Nov. 4, 2013 5:39 p.m. ET
Apple Inc. AAPL +1.29% Apple Inc. U.S.: Nasdaq $526.75 +6.72 +1.29% Nov. 4, 2013 4:00 pm Volume (Delayed 15m) : 8.62M AFTER HOURS $526.50 -0.25 -0.05% Nov. 4, 2013 6:59 pm Volume (Delayed 15m): 106,372 P/E Ratio 13.20 Market Cap $467.89 Billion Dividend Yield 2.32% Rev. per Employee $2,127,850 11/04/13 Apple in Pact With GTA for Ari... 11/03/13 Patent Wars Erupt Again in Tec... 11/01/13 Short Lines for Apple iPad Lau... More quote details and news » is building a new component manufacturing plant in Arizona, striking an agreement with GT Advanced Technologies Inc. GTAT +3.78% GT Advanced Technologies Inc. U.S.: Nasdaq $8.38 +0.30 +3.78% Nov. 4, 2013 4:00 pm Volume (Delayed 15m) : 6.85M AFTER HOURS $9.40 +1.02 +12.17% Nov. 4, 2013 6:58 pm Volume (Delayed 15m): 2.11M P/E Ratio N/A Market Cap $998.40 Million Dividend Yield N/A Rev. per Employee $929,517 11/04/13 Apple in Pact With GTA for Ari... More quote details and news » that will provide sapphire material for use in Apple products.
GT Advanced Technologies said it entered into a multiyear supply agreement at an Apple-owned facility in Mesa, Ariz.
GT said Apple will provide the company with a prepayment of approximately $578 million that GT will reimburse to Apple over five years, starting in 2015.
Apple confirmed the deal, though it declined to specify how it would use the sapphire material.
Sapphire, known for its hardness, is used for a variety of purposes in electronics, including the manufacture of LEDs, or light-emitting diodes. Apple and other smartphone makers are now using the material for purposes such as covers for camera lenses. A patent filing from Apple earlier this year indicated that sapphire could also be used to create scratch-resistant displays.
"We are proud to expand our domestic manufacturing initiative with a new facility in Arizona, creating more than 2,000 jobs in engineering, manufacturing and construction," an Apple spokeswoman said in a statement.
She said the facility would run on "100% renewable" energy.
"Their investment in renewable energy will also be greening our power grid, and creating significant new solar and geothermal power sources for the state," said Jan Brewer, Arizona's governor, in a statement.
GT, based in Merrimack, N.H., makes electronics-manufacturing equipment and materials. The company said it would own and operate furnaces and related equipment at the Apple facility to produce the sapphire materials.
GT's shares jumped 18% in after-hours trading Monday following the news, which was issued along with GT's third-quarter financial results.
—Don Clark contributed to this article.
Write to Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com
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