[NewsPoster]

The sapphire manufacturing facility in Mesa, Arizona owned by Apple but currently occupied by the now-bankrupt GT Advanced Technologies will eventually be re-purposed by the iPhone maker, according to a report from Mesa City Manager Chris Brady. This could allow some employees, who are looking at possible layoffs as early as this month, to continue working at the facility. Currently, GT Advanced is being allowed to remain in the facility rent-free through the remainder of the year in order to wind down operations.

Bloomberg reports that the 1.3 million square-foot facility will be re-used by Apple for some not-yet-known purpose, with Brady confirming that the iPhone maker has "indicated their commitment to us: they want to re-purpose that building and use it again."

The facility was originally built as a solar panel factory, and is thus already set up for advanced technology companies such as the manufacturing plant GT Advanced planned to run there. The latter company ran into trouble in its partnership with Apple after production flaws and delays meant that it could not turn a profit on the extra large-sized sapphire joules it produced there, perhaps originally intended for the displays on the iPhone 6 line, but currently used just on the Touch ID and camera lens on current iPhone and iPad models.

Apple, which owns the land and the buildings at the facility, had loaned GT Advanced some $500 million to develop its technology and implement its production line, but the company ultimately failed in its goals. Apple will be repaid on its loan through the sale of the sapphire furnaces it bought for GT Advanced. The plant received numerous economic incentives and renewable-energy supply agreements, and even has its own on-site power station for renewable energy production.

Originally, Apple had planned to buy up an adjacent lot and building, and may still do so, though expansion plans have been put on hold pending a resolution of the GT Advanced bankruptcy. The area where the facility is located is in a "foreign trade zone," and is consequently ideal for investment with a 70 percent reduction in property tax.

Immediately after GT Advanced announced its "surprise" bankruptcy, Apple said that it work to preserve jobs and "work with state and local officials" to ease the impact of the loss of the 700-plus GT Advanced jobs. Thus far, it hasn't outlined any specifics on how it plans to do that.

Mesa Mayor John Giles expressed hope that Apple could continue to operate the facility, saying "there's a reason [Apple] came here, and none of those reasons have changed." Giles plans to visit Cupertino in the near future to talk with Apple executives about the future of the plant.

[Inkling]

Given how badly Apple treated GT Tech, a company would be an utter fool to undertake any project in these facilities that has the slightest risk. People wonder whether the Steve Jobs legacy at Apple will continue. Given the revelations about Apple's ill-tempered negotiating with GT Tech, it's clear that Jobs 'tantrums like a two-year-old' have become deeply embedded into the company's culture. I now understand and appreciate the good sense Dropbox executives displayed when they refused to be bought out by Apple at any price.

[DiabloConQueso]

How, exactly, did Apple treat GT Tech "badly?"

[Flying Meat]

Well, let's see.
Apple bought some property, a plant and some furnaces for GT to use. GT soaked up a couple hundred million and failed.
Apple said, what? You can't make the existing contractual obligations? That's it. We're cutting you off.

Pretty mean of ol' Apple.

[I-ku-u]

"Apple will be repaid on its loan through the sale of the sapphire furnaces it bought for GT Advanced." - Either that's a mischaracterization of the situation, or Apple is selling it's own property to offset the $500 million GT owes Apple. If the latter is true, then Apple is demonstrably bending over backwards to treat GT well.

[sgs123]

There's also a significant amount of evidence that the senior management at GT was more concerned with cashing out their options than delivering a product -- probably much to the chagrin of the technical people doing the work. If they were close to having something working, you'd sort of expect Apple to buy the pieces in the bankruptcy settlement.