It is official that Apple Inc. (NASDAQ:AAPL)’s troubled sapphire glass supplier will be shutting down its Arizona plant. A notice from GT Advanced Technologies Inc (NASDAQ:GTAT)’s Human Resources Vice President stated that a total of 727 jobs, including administrative, management, production and technical jobs, would be laid off. The process will start next week and is expected to be completed by the second week of December.

GT Advanced Technologies taxed by Apple’s exacting contract

Last year, GT Advanced Technologies Inc (NASDAQ:GTAT) had struck a deal for $578 million with Apple Inc. (NASDAQ:AAPL) to provide the iPhone manufacturer with material for its devices. According to the deal, GTAT was required to supply the material used to cover the camera and TouchID sensors in Apple’s devices such as the iPhone 6, iPhone 6 Plus and iWatch.

During Chapter 11 proceedings, GT Advanced Technologies Inc (NASDAQ:GTAT) had claimed that the contract with Apple Inc. (NASDAQ:AAPL) severely overburdened the company and Apple’s exacting quality standards and the resulting loss to GTAT if they were not met hacked into the crystal manufacturer’s finances. GTAT’s business with other customers was also limited by the contract with Apple. Apple had supposedly withheld up to $139 million in payments just weeks before GTAT initiated its bankruptcy proceedings.

GT Advanced Technologies’ bankruptcy unexpected says Apple

Tom Gutierrez, President and Chief Executive Officer of GT Advanced Technologies Inc (NASDAQ:GTAT), mentioned that filing for bankruptcy did not mean that his company was out of business. Instead, he claimed that it was an opportunity to maintain its business and continue to grow with a better foundation.

Apple Inc. (NASDAQ:AAPL), however, said that it was surprised by GTAT’s move to file for bankruptcy and had issued a public statement to the effect that it will work with the officials to save the jobs lost at GTAT’s Mesa, Arizona plant. The iPhone manufacturer also requested the bankruptcy court to seal documents containing sensitive data submitted by GT as part of the Chapter 11 proceedings.