A New Hampshire company that was manufacturing synthetic sapphire glass has reached a settlement with Apple, but at the expense of layoffs at its facilities in Salem and New Hampshire.
GT Advanced Technologies said in a statement yesterday it will "wind down" its sapphire production in Salem and Mesa, Ariz., under a settlement with Apple that is part of the company's ongoing Chapter 11 bankruptcy proceedings.
GT has laid off 650 workers in its Arizona plant and six employees in Salem. The Salem facility will remain open, but a number of positions will be transferred to Merrimack, N.H., headquarters.
"We sincerely regret and recognize the impact this will have on our valued employees and their families, and we are committed to supporting our employees through this transition," the company said.
Nearly a year ago, Apple announced it had signed an agreement with GT to produce synthetic sapphire, which was thought by many to be intended for the screen of the new iPhones announced in September. GT was unable to get its new plant in Arizona running properly, and filed for bankruptcy earlier this month.
The company said the layoffs in Salem are positions that supported operations in Arizona.
GT received a $659,396 tax credit from the state Office of Housing and Economic Development in 2011, contingent on the company adding — and keeping — 42 jobs for five years.
Matthew Sheaff, a spokesman for HED, said the office is monitoring the situation.
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