EX-1.01 2 d721063dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

Allison Transmission Holdings, Inc.

Conflict Minerals Report

For the Year Ended December 31, 2018

This Conflict Minerals Report for the year ended December 31, 2018 is presented to comply with Rule 13p-1 (“Rule 13p-1”) under the Securities Exchange Act of 1934, as amended. Rule 13p-1 was adopted by the Securities and Exchange Commission (“SEC”) to implement reporting and disclosure requirements related to conflict minerals as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and imposes certain reporting obligations on SEC registrants who manufacture or contract to manufacture products that contain conflict minerals which are necessary to the functionality or production of their products. “Conflict minerals” are defined as tantalum, tin, tungsten and gold. These requirements apply to registrants whatever the geographic origin of the conflict minerals and whether or not they fund armed conflict in the Democratic Republic of Congo (“DRC”) or an adjoining country (together with the DRC, the “Covered Countries”). This Conflict Minerals Report has not been subject to an independent private sector audit.

1. Company Overview and Product Description

Allison Transmission Holdings, Inc. and its subsidiaries (“Allison”, “we,” “us” or “our”) design and manufacture fully-automatic transmissions for medium- and heavy-duty commercial vehicles, medium- and heavy-tactical U.S. defense vehicles and hybrid-propulsion systems for transit buses. We generate our net sales primarily from the sale of transmissions, transmission parts, support equipment, defense kits, engineering services and extended transmission coverage to a wide array of original equipment manufacturers, distributors and the U.S. government.

We conducted an analysis of our products and found that conflict minerals are necessary to the production or functionality of our commercial, defense and hybrid products.

A complete description of our products can be found in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on February 26, 2019.

2. Reasonable Country of Origin Inquiry

We conducted a good faith reasonable country of origin inquiry (“RCOI”) to determine whether the necessary conflict minerals originated in the Covered Countries. As a company engaged in the design and manufacture of commercial and defense fully-automatic transmissions and hybrid-propulsion systems for transit buses, we are several levels removed from the actual mining of conflict minerals. We do not make purchases of raw ore or unrefined conflict minerals and we conduct no purchasing activities in the Covered Countries. In order to determine whether conflict minerals used in the manufacture of our products originated in the Covered Countries, we relied on our direct suppliers to provide information on the origin of the conflict minerals contained in components and materials supplied to us, including sources of conflict minerals that are supplied to them from their suppliers.

Scope of RCOI. Our RCOI included conducting an inquiry of our global supply chain of direct ferrous, metallic, and electrical component suppliers, using the Responsible Minerals Initiative’s (“RMI”) Conflict Minerals Reporting Template (“CMRT”) to identify the smelters and refiners responsible for processing the conflict minerals.


To assist in the collection of data and in engaging our suppliers, we enlisted a third party data collection and analysis vendor to conduct outreach, training and verification of supplier responses. As part of our global supply-chain survey, we received representations from our suppliers regarding the source of conflict minerals and compared the smelters and refiners identified in the CMRT responses against the list of smelter and refinery facilities which have been identified as conflict free by programs such as RMI’s Responsible Minerals Assurance Process for conflict minerals. In an effort to obtain the highest practical response rate, our process included multiple rounds of communication and follow-up through mail, email and telephone calls. We created and maintained a database of this information.

RCOI Results. Of our direct ferrous, metallic, and electrical component suppliers, 100% were within the scope of our RCOI. We received responses from approximately 61% of the suppliers. We reviewed the responses against criteria developed to determine which responses required additional engagement, including incomplete responses and inconsistencies within the data reported. We worked with these suppliers to obtain a revised response or additional clarity regarding their submission.

3. Due Diligence

We conducted due diligence on the source and chain of custody of the conflict minerals that are included in our products and for which, based on our RCOI, we have not been able to determine whether the conflict minerals may have originated in the Covered Countries and may not have come from recycled or scrap sources.

Design of Due Diligence. Allison’s due diligence procedures were designed to conform with the Organisation of Economic Co-Operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, which is an internationally recognized due diligence framework. Our due diligence process included:

Establishing Company Management Systems. We adopted a conflict minerals policy that governs the supply-chain of conflict minerals from the Covered Countries. In addition, we organized an internal management team to support our supply chain due diligence efforts. This cross-functional team, led by our Chief Compliance Officer and a team of subject matter experts from relevant functional areas, oversees our conflict minerals due diligence process. Senior management and the Audit Committee of our Board of Directors are briefed about the results of our due diligence efforts.

Identifying and Assessing Risk in the Supply Chain. Through our RCOI process, we solicited all ferrous, metallic, and electrical component direct suppliers with a CMRT to obtain information about the source of any conflict minerals. Our efforts largely focused on confirming the accuracy and quality of the representations our direct suppliers made regarding the source and chain of custody of their conflict minerals and comparing the smelters and refiners identified in the CMRT responses against the list of smelter and refinery facilities which have been identified as “conflict free”.

Designing and Implementing a Strategy to Respond to Risks. Our conflict minerals team is responsible for identifying and responding to risks in our supply chain. In addition, we monitor and track information received from suppliers, including a list of smelters and refiners identified through CMRT responses.


Supporting Independent Third-Party Audits of Supply Chain. We do not have a direct relationship with the conflict minerals smelters and refiners; therefore, we rely on the RMI’s Responsible Minerals Assurance Process to manage and report results of the independent third-party audits and the related certifications.

Reporting on Supply Chain Due Diligence. This conflict minerals report is being filed with the SEC as an exhibit to our specialized disclosure report on Form SD and is available on our website at www.allisontransmission.com.

4. Due Diligence Results.

Because we have not received sufficient and complete responses from all suppliers and many of the supplier responses provided data at a company level rather than at a product level, we do not have sufficient information to conclusively determine the countries of origin or chain of custody of conflict minerals in our products. Based on the CMRT responses from our direct suppliers, we believe that, to the best of our knowledge, the smelters and refiners listed in Annex A to this conflict minerals report may have been used to process the conflict minerals contained in our products.

5. Future Due Diligence Measures.

As we further develop our due diligence program in calendar year 2019, we intend to continue implementing the following steps to improve the information gathered from our due diligence efforts and to further mitigate the risk that our necessary conflict minerals do not benefit armed groups:

 

   

include language in new or renewed supplier contracts that requires the supplier to support our conflict minerals program;

 

   

engage with suppliers to increase the response rate, completeness and accuracy of supply-chain surveys; and

 

   

monitor relevant trade associations and the OECD to evaluate best practices in determining whether products contain conflict minerals.


ANNEX A

 

Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Gold    L’Orfebre S.A.    Andorra
Gold    Western Australian Mint (T/a The Perth Mint)    Australia
Gold    Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH    Austria
Gold    Umicore S.A. Business Unit Precious Metals Refining    Belgium
Gold    Marsam Metals    Brazil
Gold    AngloGold Ashanti Corrego do Sitio Mineracao    Brazil
Gold    Umicore Brasil Ltda.    Brazil
Gold    Asahi Refining Canada Ltd.    Canada
Gold    CCR Refinery—Glencore Canada Corporation    Canada
Gold    Royal Canadian Mint    Canada
Gold    Planta Recuperadora de Metales SpA    Chile
Gold    Gold Refinery of Zijin Mining Group Co., Ltd.    China
Gold    Heraeus Metals Hong Kong Ltd.    China
Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    China
Gold    Jiangxi Copper Co., Ltd.    China
Gold    Metalor Technologies (Hong Kong) Ltd.    China
Gold    Metalor Technologies (Suzhou) Ltd.    China
Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    China
Gold    Sichuan Tianze Precious Metals Co., Ltd.    China
Gold    The Refinery of Shandong Gold Mining Co., Ltd.    China
Gold    Yunnan Copper Industry Co., Ltd.    China
Gold    Zhongyuan Gold Smelter of Zhongjin Gold Corporation    China
Gold    SAAMP    France
Gold    Allgemeine Gold-und Silberscheideanstalt A.G.    Germany
Gold    Aurubis AG    Germany
Gold    C. Hafner GmbH + Co. KG    Germany


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Gold    DODUCO Contacts and Refining GmbH    Germany
Gold    Heimerle + Meule GmbH    Germany
Gold    Heraeus Precious Metals GmbH & Co. KG    Germany
Gold    SAXONIA Edelmetalle GmbH    Germany
Gold    WIELAND Edelmetalle GmbH    Germany
Gold    MMTC-PAMP India Pvt., Ltd.    India
Gold    PT Aneka Tambang (Persero) Tbk    Indonesia
Gold    Chimet S.p.A.    Italy
Gold    Italpreziosi    Italy
Gold    Safimet S.p.A.    Italy
Gold    T.C.A S.p.A    Italy
Gold    Aida Chemical Industries Co., Ltd.    Japan
Gold    Asahi Pretec Corp.    Japan
Gold    Asaka Riken Co., Ltd.    Japan
Gold    Dowa    Japan
Gold    Eco-System Recycling Co., Ltd.    Japan
Gold    Ishifuku Metal Industry Co., Ltd.    Japan
Gold    Japan Mint    Japan
Gold    JX Nippon Mining & Metals Co., Ltd.    Japan
Gold    Kojima Chemicals Co., Ltd.    Japan
Gold    Matsuda Sangyo Co., Ltd.    Japan
Gold    Mitsubishi Materials Corporation    Japan
Gold    Mitsui Mining and Smelting Co., Ltd.    Japan
Gold    Nihon Material Co., Ltd.    Japan
Gold    Ohura Precious Metal Industry Co., Ltd.    Japan
Gold    Sumitomo Metal Mining Co., Ltd.    Japan
Gold    Tanaka Kikinzoku Kogyo K.K.    Japan
Gold    Tokuriki Honten Co., Ltd.    Japan


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Gold    Yamakin Co., Ltd.    Japan
Gold    Yokohama Metal Co., Ltd.    Japan
Gold    Kazzinc    Kazakhstan
Gold    Daejin Indus Co., Ltd.    Korea, Republic of
Gold    DS PRETECH Co., Ltd.    Korea, Republic of
Gold    DSC (Do Sung Corporation)    Korea, Republic of
Gold    HeeSung Metal Ltd.    Korea, Republic of
Gold    Korea Zinc Co., Ltd.    Korea, Republic of
Gold    LS-NIKKO Copper Inc.    Korea, Republic of
Gold    Samduck Precious Metals    Korea, Republic of
Gold    SungEel HiMetal Co., Ltd.    Korea, Republic of
Gold    Torecom    Korea, Republic of
Gold    Kyrgyzaltyn JSC    Kyrgyzstan
Gold    Modeltech Sdn Bhd    Malaysia
Gold    Metalurgica Met-Mex Penoles S.A. De C.V.    Mexico
Gold    Remondis Argentia B.V.    Netherlands
Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    Philippines
Gold    JSC Uralelectromed    Russian Federation
Gold    Moscow Special Alloys Processing Plant    Russian Federation
Gold    OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)    Russian Federation
Gold    OJSC Novosibirsk Refinery    Russian Federation
Gold    Prioksky Plant of Non-Ferrous Metals    Russian Federation
Gold    SOE Shyolkovsky Factory of Secondary Precious Metals    Russian Federation
Gold    Metalor Technologies (Singapore) Pte., Ltd.    Singapore
Gold    AU Traders and Refiners    South Africa
Gold    Rand Refinery (Pty) Ltd.    South Africa
Gold    SEMPSA Joyeria Plateria S.A.    Spain


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Gold    Boliden AB    Sweden
Gold    Argor-Heraeus S.A.    Switzerland
Gold    Cendres + Metaux S.A.    Switzerland
Gold    Metalor Technologies S.A.    Switzerland
Gold    PAMP S.A.    Switzerland
Gold    PX Precinox S.A.    Switzerland
Gold    Valcambi S.A.    Switzerland
Gold    Singway Technology Co., Ltd.    Taiwan, Province of China
Gold    Solar Applied Materials Technology Corp.    Taiwan, Province of China
Gold    Umicore Precious Metals Thailand    Thailand
Gold    Istanbul Gold Refinery    Turkey
Gold    Nadir Metal Rafineri San. Ve Tic. A.S.    Turkey
Gold    Al Etihad Gold Refinery DMCC    United Arab Emirates
Gold    Emirates Gold DMCC    United Arab Emirates
Gold    Advanced Chemical Company    United States of America
Gold    Asahi Refining USA Inc.    United States of America
Gold    Geib Refining Corporation    United States of America
Gold    Kennecott Utah Copper LLC    United States of America
Gold    Materion    United States of America
Gold    Metalor USA Refining Corporation    United States of America
Gold    Republic Metals Corporation    United States of America
Gold    United Precious Metal Refining, Inc.    United States of America
Gold    Almalyk Mining and Metallurgical Complex (AMMC)    Uzbekistan
Tantalum    LSM Brasil S.A.    Brazil
Tantalum    Mineracao Taboca S.A.    Brazil
Tantalum    Resind Industria e Comercio Ltda.    Brazil
Tantalum    Changsha South Tantalum Niobium Co., Ltd.    China
Tantalum    F&X Electro-Materials Ltd.    China


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Tantalum    FIR Metals & Resource Ltd.    China
Tantalum    Guangdong Rising Rare Metals-EO Materials Ltd.    China
Tantalum    Guangdong Zhiyuan New Material Co., Ltd.    China
Tantalum    Hengyang King Xing Lifeng New Materials Co., Ltd.    China
Tantalum    Jiangxi Dinghai Tantalum & Niobium Co., Ltd.    China
Tantalum    Jiangxi Tuohong New Raw Material    China
Tantalum    Jiujiang Janny New Material Co., Ltd.    China
Tantalum    JiuJiang JinXin Nonferrous Metals Co., Ltd.    China
Tantalum    Jiujiang Tanbre Co., Ltd.    China
Tantalum    Jiujiang Zhongao Tantalum & Niobium Co., Ltd.    China
Tantalum    Ningxia Orient Tantalum Industry Co., Ltd.    China
Tantalum    RFH Tantalum Smeltery Co., Ltd./Yanling Jincheng Tantalum & Niobium Co., Ltd.    China
Tantalum    XinXing HaoRong Electronic Material Co., Ltd.    China
Tantalum    NPM Silmet AS    Estonia
Tantalum    H.C. Starck Hermsdorf GmbH    Germany
Tantalum    H.C. Starck Smelting GmbH & Co. KG    Germany
Tantalum    H.C. Starck Tantalum and Niobium GmbH    Germany
Tantalum    Metallurgical Products India Pvt., Ltd.    India
Tantalum    Asaka Riken Co., Ltd.    Japan
Tantalum    Global Advanced Metals Aizu    Japan
Tantalum    H.C. Starck Ltd.    Japan
Tantalum    Mitsui Mining and Smelting Co., Ltd.    Japan
Tantalum    Taki Chemical Co., Ltd.    Japan
Tantalum    Ulba Metallurgical Plant JSC    Kazakhstan
Tantalum    Power Resources Ltd.    Macedonia, The Former Yugoslav Republic of
Tantalum    KEMET Blue Metals    Mexico
Tantalum    Solikamsk Magnesium Works OAO    Russian Federation


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Tantalum    H.C. Starck Co., Ltd.    Thailand
Tantalum    D Block Metals, LLC    United States of America
Tantalum    Exotech Inc.    United States of America
Tantalum    Global Advanced Metals Boyertown    United States of America
Tantalum    H.C. Starck Inc.    United States of America
Tantalum    KEMET Blue Powder    United States of America
Tantalum    QuantumClean    United States of America
Tantalum    Telex Metals    United States of America
Tin    Metallo Belgium N.V.    Belgium
Tin    EM Vinto    Bolivia
Tin    Operaciones Metalurgical S.A.    Bolivia
Tin    Magnu’s Minerais Metais e Ligas Ltda.    Brazil
Tin    Melt Metais e Ligas S.A.    Brazil
Tin    Mineracao Taboca S.A.    Brazil
Tin    Resind Industria e Comercio Ltda.    Brazil
Tin    Soft Metais Ltda.    Brazil
Tin    White Solder Metalurgia e Mineracao Ltda.    Brazil
Tin    Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.    China
Tin    Chifeng Dajingzi Tin Industry Co., Ltd.    China
Tin    China Tin Group Co., Ltd.    China
Tin    Gejiu Fengming Metallurgy Chemical Plant    China
Tin    Gejiu Jinye Mineral Company    China
Tin    Gejiu Kai Meng Industry and Trade LLC    China
Tin    Gejiu Non-Ferrous Metal Processing Co., Ltd.    China
Tin    Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.    China
Tin    Guangdong Hanhe Non-Ferrous Metal Co., Ltd.    China
Tin    Guanyang Guida Nonferrous Metal Smelting Plant    China
Tin    HuiChang Hill Tin Industry Co., Ltd.    China


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Tin    Huichang Jinshunda Tin Co., Ltd.    China
Tin    Jiangxi Ketai Advanced Material Co., Ltd.    China
Tin    Jiangxi New Nanshan Technology Ltd.    China
Tin    Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    China
Tin    Yunnan Tin Company Limited    China
Tin    CV Ayi Jaya    Indonesia
Tin    CV Dua Sekawan    Indonesia
Tin    CV Gita Pesona    Indonesia
Tin    CV United Smelting    Indonesia
Tin    CV Venus Inti Perkasa    Indonesia
Tin    PT Aries Kencana Sejahtera    Indonesia
Tin    PT Artha Cipta Langgeng    Indonesia
Tin    PT ATD Makmur Mandiri Jaya    Indonesia
Tin    PT Babel Inti Perkasa    Indonesia
Tin    PT Bangka Prima Tin    Indonesia
Tin    PT Bangka Serumpun    Indonesia
Tin    PT Bangka Tin Industry    Indonesia
Tin    PT Belitung Industri Sejahtera    Indonesia
Tin    PT Bukit Timah    Indonesia
Tin    PT DS Jaya Abadi    Indonesia
Tin    PT Eunindo Usaha Mandiri    Indonesia
Tin    PT Inti Stania Prima    Indonesia
Tin    PT Karimun Mining    Indonesia
Tin    PT Kijang Jaya Mandiri    Indonesia
Tin    PT Lautan Harmonis Sejahtera    Indonesia
Tin    PT Menara Cipta Mulia    Indonesia
Tin    PT Mitra Stania Prima    Indonesia
Tin    PT Panca Mega Persada    Indonesia


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Tin    PT Premium Tin Indonesia    Indonesia
Tin    PT Prima Timah Utama    Indonesia
Tin    PT Rajehan Ariq    Indonesia
Tin    PT Refined Bangka Tin    Indonesia
Tin    PT Sariwiguna Binasentosa    Indonesia
Tin    PT Stanindo Inti Perkasa    Indonesia
Tin    PT Sukses Inti Makmur    Indonesia
Tin    PT Sumber Jaya Indah    Indonesia
Tin    PT Timah (Persero) Tbk Kundur    Indonesia
Tin    PT Timah (Persero) Tbk Mentok    Indonesia
Tin    PT Tinindo Inter Nusa    Indonesia
Tin    PT Tommy Utama    Indonesia
Tin    Dowa    Japan
Tin    Mitsubishi Materials Corporation    Japan
Tin    Malaysia Smelting Corporation (MSC)    Malaysia
Tin    Modeltech Sdn Bhd    Malaysia
Tin    Minsur    Peru
Tin    O.M. Manufacturing Philippines, Inc.    Philippines
Tin    Fenix Metals    Poland
Tin    Metallo Spain S.L.U.    Spain
Tin    Rui Da Hung    Taiwan, Province of China
Tin    O.M. Manufacturing (Thailand) Co., Ltd.    Thailand
Tin    Thaisarco    Thailand
Tin    Alpha    United States of America
Tin    Metallic Resources, Inc.    United States of America
Tin    Tin Technology & Refining    United States of America
Tungsten    Wolfram Bergbau und Hutten AG    Austria
Tungsten    ACL Metais Eireli    Brazil


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Tungsten    Chenzhou Diamond Tungsten Products Co., Ltd.    China
Tungsten    Chongyi Zhangyuan Tungsten Co., Ltd.    China
Tungsten    Fujian Jinxin Tungsten Co., Ltd.    China
Tungsten    Ganzhou Haichuang Tungsten Co., Ltd.    China
Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.    China
Tungsten    Ganzhou Jiangwu Ferrotungsten Co., Ltd.    China
Tungsten    Ganzhou Seadragon W & Mo Co., Ltd.    China
Tungsten    Guangdong Xianglu Tungsten Co., Ltd.    China
Tungsten    Hunan Chenzhou Mining Co., Ltd.    China
Tungsten    Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji    China
Tungsten    Hunan Chunchang Nonferrous Metals Co., Ltd.    China
Tungsten    Jiangwu H.C. Starck Tungsten Products Co., Ltd.    China
Tungsten    Jiangxi Gan Bei Tungsten Co., Ltd.    China
Tungsten    Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.    China
Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.    China
Tungsten    Jiangxi Yaosheng Tungsten Co., Ltd.    China
Tungsten    Malipo Haiyu Tungsten Co., Ltd.    China
Tungsten    South-East Nonferrous Metal Company Limited of Hengyang City    China
Tungsten    Xiamen Tungsten (H.C.) Co., Ltd.    China
Tungsten    Xiamen Tungsten Co., Ltd.    China
Tungsten    Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.    China
Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.    China
Tungsten    H.C. Starck Smelting GmbH & Co. KG    Germany
Tungsten    H.C. Starck Tungsten GmbH    Germany
Tungsten    A.L.M.T. TUNGSTEN Corp.    Japan
Tungsten    Japan New Metals Co., Ltd.    Japan
Tungsten    Woltech Korea Co., Ltd.    Korea, Republic of


Mineral

  

Smelter or Refiner Name

  

Country Location of

Smelter or Refiner

Tungsten    Philippine Chuangxin Industrial Co., Inc.    Philippines
Tungsten    Hydrometallurg, JSC    Russian Federation
Tungsten    Moliren Ltd.    Russian Federation
Tungsten    Unecha Refractory metals plant    Russian Federation
Tungsten    Global Tungsten & Powders Corp.    United States of America
Tungsten    Kennametal Fallon    United States of America
Tungsten    Kennametal Huntsville    United States of America
Tungsten    Niagara Refining LLC    United States of America
Tungsten    Asia Tungsten Products Vietnam Ltd.    Vietnam
Tungsten    Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC    Vietnam
Tungsten    Tejing (Vietnam) Tungsten Co., Ltd.    Vietnam
Tungsten    Vietnam Youngsun Tungsten Industry Co., Ltd.    Vietnam