UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM SD
Specialized Disclosure Report
NORTECH SYSTEMS INCORPORATED
(Exact name of registrant as specified in charter)
Minnesota |
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0-13257 |
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41-16810894 |
(State or other jurisdiction |
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(Commission |
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IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
7050 Meridian Circle N, Suite 15
Maple Grove, MN 55369
(Address of principal executive offices)
(952) 345-2244
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed from last report)
Check the appropriate box to indicate the rule pursuant to which this form is being filed, And provide the period to which the information in this form applies:
x Rule 13p-1 under the Securities Exchange Act (17CFR 240.13p-1) for the reporting period from January 1 to December 31, 2017.
Section 1 Conflict Minerals Disclosure
Item 1.01 Conflict Minerals Disclosure and Report
Nortech Systems Incorporated (the Company) has prepared and filed a Conflict Minerals Report for the reporting period January 1, 2017 to December 31, 2017, which is provided as an Exhibit hereto and is publicly available at http://www.nortechsys.com/wp-content/uploads/Conflict-Minerals-Disclosure.pdf.
Item 1.02 Exhibit
The Company has filed, as Exhibit 1.01 to this Specialized Disclosure Report on Form SD, a Conflict Minerals Report.
Section 2 Exhibits
Item 2.01 Exhibits
Exhibit 1.01 - Conflict Minerals Report as required by Items 1.01 and 1.02 of this Form.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.
Date: May 18, 2018 |
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Nortech Systems Incorporated |
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(Registrant) |
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/s/ Constance Beck |
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Constance Beck, Chief Financial Officer |
Conflict Minerals Report May 9, 2018
Nortech is a full-service electronics manufacturing (EMS) provider of wire and cable assemblies, printed circuit boards assemblies and higher-level complete box build assemblies for a wide range of industries. Metallic forms of tin, tantalum, tungsten and gold (Conflict Minerals) are present in some of the products, components and materials we purchase and are necessary to the functionality of many of the products we manufacture. We do not buy any ores directly, nor do we directly purchase these processed metals in their raw form.
Nortechs corporate policy regarding Conflict Minerals and disclosure regarding whether any Conflict Minerals necessary to the functionality or production of a product originated in Covered Countries is made public on our website at: http://www.nortechsys.com/about-nortech/quality-regulatory-compliance/conflict-minerals-policy/
Design of Due Diligence Framework
Our due diligence procedures are in compliance with the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Third Edition) and its supplements.
Nortechs policy regarding Conflict Minerals was communicated to employees internally and to suppliers externally via e-mail and posted to our website.
Our cross functional conflict minerals team was established to carry out the necessary due diligence and reporting requirements. The team currently includes the following roles:
Team Members: Document Specialist
Global Supplier Quality Manager
Executive Sponsors: President & CEO
Chief Financial Officer
Due Diligence Measures Performed
Our RCOI (reasonable country of origin inquiry) and due diligence procedures include the following:
· Due to the size of the Nortechs sourcing functions, we focused on our largest suppliers that provide components and materials directly incorporated into our final products, ranked by the amount the Company spends with each such supplier, and the suppliers that had the highest probability of supplying us with products or components containing Conflict Minerals (e.g. electronics).
· We surveyed relevant suppliers representing 80% of our total company supplier spend on components and materials directly incorporated into our final products.
· Relevant suppliers were evaluated to identify whether the products, materials or components supplied to Nortech contain Conflict Minerals.
· Data was collected directly from suppliers using the Conflict Minerals Reporting Template developed by the Responsible Minerals Initiative (RMI) formerly known as CFSI.
· Supplier declarations were reviewed for completeness, accuracy and conformance to Nortech requirements.
· An escalation process was initiated with relevant suppliers who were non responsive after the initial contact was made, or whose initial response was incomplete, unclear or nonconforming.
Analysis of Supplier Survey Responses
· We were unable to confirm through our RCOI that Conflict Minerals contained in our products did not originate from the Covered Countries or were from recycled/scrap materials. Therefore we conducted due diligence on the processing facilities identified by our suppliers and prepared this Conflict Minerals Report.
· Conflict minerals information from some suppliers was presented to Nortech at a company-level rather than a Nortech product-specific response. As a result, it is likely that our lists of smelters, refiners and countries of origin (discussed below) include sources that are actually not in our supply chain.
Due Diligence Results
· Suppliers that responded to our survey provided lists of smelters and refiners on which we conducted due diligence.
· Our due diligence process included comparing the supplier-provided names of smelters/refiners against lists of audited and verified smelters and refiners from CFSI, LBMA, RJC, TI-CMC and the US Department of Commerce. The lists of smelters and refiners are included as Table 1.
· Certain suppliers identified Kaloti Precious Metals, Sudan Gold Refinery, Tony Goetz NV, Universal Precious Metals Refining Zambia, and African Gold Refinery as sources of gold in their supply chains. These refineries are not audited by the CFSI and public information indicates the possibility that these are high-risk facilities. Because the conflict minerals information from these suppliers was presented to Nortech as company-level responses rather than Nortech product-specific responses, it is uncertain if these facilities are actually in our supply chain. As part of our due diligence process, Nortech implemented our risk mitigation plan for the subject suppliers, engaging them to conduct additional research on whether these facilities are, in reality, present in our supply chain. At this time, those suppliers have not completed their investigation. If we determine that material sourced from these facilities is present in Nortechs supply chain, we will work with our suppliers to explore alternatives.
· Country of origin information was obtained where reasonably available to Nortech and is presented as Table 2.
CMRT Reporting to our customers.
· Nortech issues a standard response using the EICC CMRT.
Third Party Audits of Processing Facilities
· Nortech does not conduct audits of smelters or refiners. We support the Responsible Mineral Initiatives Conflict Free Smelter program through our corporate policy and procurement requirements by encouraging suppliers to source from audited facilities.
Annual Reporting
· In accordance with the OECD Guidance and the Rule, this report is available on our website: www.nortechsys.com
Declaration
· Based on our due diligence results, Nortech has determined that our products are DRC Conflict Undeterminable.
Independent Private Sector Audit
· Not required for reporting year 2017.
Limitations
Conflict Minerals sourcing and traceability information is limited at this time. Moreover , there are inherent limitations and risks in the information that is available. We are reliant on the information provided to us by our suppliers and industry initiatives such as the CFSI. Our processes are intended to provide reasonable assurance not absolute certainty- about the identification of processing facilities and the sources of their ores.
Table 1: Smelters/Refiners
Gold Smelters/Refiners |
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Abington Reldan Metals, LLC |
Advanced Chemical Company |
African Gold Refinery |
Aida Chemical Industries Co., Ltd. |
Al Etihad Gold Refinery DMCC |
Allgemeine Gold-und Silberscheideanstalt A.G. |
Almalyk Mining and Metallurgical Complex (AMMC) |
AngloGold Ashanti Corrego do Sitio Mineracao |
Argor-Heraeus S.A. |
Asahi Pretec Corp. |
Asahi Refining Canada Ltd. |
Asahi Refining USA Inc. |
Asaka Riken Co., Ltd. |
Atasay Kuyumculuk Sanayi Ve Ticaret A.S. |
AU Traders and Refiners |
Aurubis AG |
Bangalore Refinery |
Bangko Sentral ng Pilipinas (Central Bank of the Philippines) |
Boliden AB |
C. Hafner GmbH + Co. KG |
Caridad |
CCR Refinery - Glencore Canada Corporation |
Cendres + Metaux S.A. |
Chimet S.p.A. |
Chugai Mining |
Daejin Indus Co., Ltd. |
Daye Non-Ferrous Metals Mining Ltd. |
Degussa Sonne / Mond Goldhandel GmbH |
DODUCO Contacts and Refining GmbH |
Dowa |
DS PRETECH Co., Ltd. |
DSC (Do Sung Corporation) |
Eco-System Recycling Co., Ltd. |
Elemetal Refining, LLC |
Emirates Gold DMCC |
Fidelity Printers and Refiners Ltd. |
GCC Gujrat Gold Centre Pvt. Ltd. |
Geib Refining Corporation |
Gold Refinery of Zijin Mining Group Co., Ltd. |
Great Wall Precious Metals Co., Ltd. of CBPM |
Guangdong Jinding Gold Limited |
Guoda Safina High-Tech Environmental Refinery Co., Ltd. |
Hangzhou Fuchunjiang Smelting Co., Ltd. |
HeeSung Metal Ltd. |
Heimerle + Meule GmbH |
Heraeus Metals Hong Kong Ltd. |
Heraeus Precious Metals GmbH & Co. KG |
Hunan Chenzhou Mining Co., Ltd. |
HwaSeong CJ CO., LTD. |
Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. |
Ishifuku Metal Industry Co., Ltd. |
Istanbul Gold Refinery |
Italpreziosi |
Japan Mint |
Jiangxi Copper Co., Ltd. |
JSC Ekaterinburg Non-Ferrous Metal Processing Plant |
JSC Uralelectromed |
JX Nippon Mining & Metals Co., Ltd. |
Kaloti Precious Metals |
Kazakhmys Smelting LLC |
Kazzinc |
Kennecott Utah Copper LLC |
KGHM Polska Miedz Spolka Akcyjna |
Kojima Chemicals Co., Ltd. |
Korea Zinc Co., Ltd. |
Kyrgyzaltyn JSC |
Kyshtym Copper-Electrolytic Plant ZAO |
Lazurde Company For Jewelry |
Lingbao Gold Co., Ltd. |
Lingbao Jinyuan Tonghui Refinery Co., Ltd. |
LOrfebre S.A. |
LS-NIKKO Copper Inc. |
Luoyang Zijin Yinhui Gold Refinery Co., Ltd. |
Marsam Metals |
Materion |
Matsuda Sangyo Co., Ltd. |
Metalor Technologies (Hong Kong) Ltd. |
Metalor Technologies (Singapore) Pte., Ltd. |
Metalor Technologies (Suzhou) Ltd. |
Metalor Technologies S.A. |
Metalor USA Refining Corporation |
Metalurgica Met-Mex Penoles S.A. De C.V. |
Mitsubishi Materials Corporation |
Mitsui Mining and Smelting Co., Ltd. |
MMTC-PAMP India Pvt., Ltd. |
Modeltech Sdn Bhd |
Morris and Watson |
Morris and Watson Gold Coast |
Moscow Special Alloys Processing Plant |
Nadir Metal Rafineri San. Ve Tic. A.S. |
Navoi Mining and Metallurgical Combinat |
NH Recytech Company |
Nihon Material Co., Ltd. |
Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH |
Ohura Precious Metal Industry Co., Ltd. |
OJSC The Gulidov Krasnoyarsk Non-Ferrous Metals Plant (OJSC Krastsvetmet) |
OJSC Novosibirsk Refinery |
PAMP S.A. |
Pease & Curren |
Penglai Penggang Gold Industry Co., Ltd. |
Planta Recuperadora de Metales SpA |
Prioksky Plant of Non-Ferrous Metals |
PT Aneka Tambang (Persero) Tbk |
PX Precinox S.A. |
Rand Refinery (Pty) Ltd. |
Refinery of Seemine Gold Co., Ltd. |
Remondis Argentia B.V. |
Republic Metals Corporation |
Royal Canadian Mint |
SAAMP |
Sabin Metal Corp. |
Safimet S.p.A |
SAFINA A.S. |
Sai Refinery |
Samduck Precious Metals |
Samwon Metals Corp. |
SAXONIA Edelmetalle GmbH |
SEMPSA Joyeria Plateria S.A. |
Shandong Tiancheng Biological Gold Industrial Co., Ltd. |
Shandong Zhaojin Gold & Silver Refinery Co., Ltd. |
Sichuan Tianze Precious Metals Co., Ltd. |
Singway Technology Co., Ltd. |
SOE Shyolkovsky Factory of Secondary Precious Metals |
Solar Applied Materials Technology Corp. |
State Research Institute Center for Physical Sciences and Technology |
Sudan Gold Refinery |
Sumitomo Metal Mining Co., Ltd. |
SungEel HiMetal Co., Ltd. |
T.C.A S.p.A |
Tanaka Kikinzoku Kogyo K.K. |
The Refinery of Shandong Gold Mining Co., Ltd. |
Tokuriki Honten Co., Ltd. |
Tongling Nonferrous Metals Group Co., Ltd. |
Tony Goetz NV |
TOO Tau-Ken-Altyn |
Torecom |
Umicore Brasil Ltda. |
Umicore Precious Metals Thailand |
Umicore S.A. Business Unit Precious Metals Refining |
United Precious Metal Refining, Inc. |
Universal Precious Metals Refining Zambia |
Valcambi S.A. |
Western Australian Mint (T/a The Perth Mint) |
WIELAND Edelmetalle GmbH |
Yamakin Co., Ltd. |
Yokohama Metal Co., Ltd. |
Yunnan Copper Industry Co., Ltd. |
Zhongyuan Gold Smelter of Zhongjin Gold Corporation |
Tantalum Smelters/Refiners |
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Asaka Riken Co., Ltd. |
Changsha South Tantalum Niobium Co., Ltd. |
D Block Metals, LLC |
Exotech Inc. |
F&X Electro-Materials Ltd. |
FIR Metals & Resource Ltd. |
Global Advanced Metals Aizu |
Global Advanced Metals Boyertown |
Guangdong Rising Rare Metals-EO Materials Ltd. |
Guangdong Zhiyuan New Material Co., Ltd. |
H.C. Starck Co., Ltd. |
H.C. Starck Hermsdorf GmbH |
H.C. Starck Inc. |
H.C. Starck Ltd. |
H.C. Starck Smelting GmbH & Co. KG |
H.C. Starck Tantalum and Niobium GmbH |
Hengyang King Xing Lifeng New Materials Co., Ltd. |
Jiangxi Dinghai Tantalum & Niobium Co., Ltd. |
Jiangxi Tuohong New Raw Material |
Jiujiang Janny New Material Co., Ltd. |
JiuJiang JinXin Nonferrous Metals Co., Ltd. |
Jiujiang Tanbre Co., Ltd. |
Jiujiang Zhongao Tantalum & Niobium Co., Ltd. |
KEMET Blue Metals |
KEMET Blue Powder |
LSM Brasil S.A. |
Metallurgical Products India Pvt., Ltd. |
Mineracao Taboca S.A. |
Mitsui Mining and Smelting Co., Ltd. |
Ningxia Orient Tantalum Industry Co., Ltd. |
NPM Silmet AS |
Power Resources Ltd. |
QuantumClean |
Resind Industria e Comercio Ltda. |
RFH Tantalum Smeltery Co., Ltd./Yanling Jincheng Tantalum & Niobium Co., Ltd. |
Solikamsk Magnesium Works OAO |
Taki Chemical Co., Ltd. |
Telex Metals |
Ulba Metallurgical Plant JSC |
XinXing HaoRong Electronic Material Co., Ltd. |
Tin Smelters/Refiners |
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Alpha |
An Vinh Joint Stock Mineral Processing Company |
Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. |
Chifeng Dajingzi Tin Industry Co., Ltd. |
China Tin Group Co., Ltd. |
CNMC (Guangxi) PGMA Co., Ltd. |
CV Ayi Jaya |
CV Dua Sekawan |
CV Gita Pesona |
CV United Smelting |
CV Venus Inti Perkasa |
Dowa |
Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company |
EM Vinto |
Estanho de Rondonia S.A. |
Fenix Metals |
Gejiu Fengming Metallurgy Chemical Plant |
Gejiu Jinye Mineral Company |
Gejiu Kai Meng Industry and Trade LLC |
Gejiu Non-Ferrous Metal Processing Co., Ltd. |
Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. |
Gejiu Zili Mining And Metallurgy Co., Ltd. |
Guangdong Hanhe Non-Ferrous Metal Co., Ltd. |
Guanyang Guida Nonferrous Metal Smelting Plant |
HuiChang Hill Tin Industry Co., Ltd. |
Huichang Jinshunda Tin Co., Ltd. |
Jiangxi Ketai Advanced Material Co., Ltd. |
Jiangxi New Nanshan Technology Ltd. |
Magnus Minerais Metais e Ligas Ltda. |
Malaysia Smelting Corporation (MSC) |
Melt Metais e Ligas S.A. |
Metallic Resources, Inc. |
Metallo Belgium N.V. |
Metallo Spain S.L.U. |
Mineracao Taboca S.A. |
Minsur |
Mitsubishi Materials Corporation |
Modeltech Sdn Bhd |
Nghe Tinh Non-Ferrous Metals Joint Stock Company |
O.M. Manufacturing (Thailand) Co., Ltd. |
O.M. Manufacturing Philippines, Inc. |
Operaciones Metalurgical S.A. |
Pongpipat Company Limited |
PT Aries Kencana Sejahtera |
PT Artha Cipta Langgeng |
PT ATD Makmur Mandiri Jaya |
PT Babel Inti Perkasa |
PT Babel Surya Alam Lestari |
PT Bangka Prima Tin |
PT Bangka Serumpun |
PT Bangka Tin Industry |
PT Belitung Industri Sejahtera |
PT Bukit Timah |
PT DS Jaya Abadi |
PT Eunindo Usaha Mandiri |
PT Inti Stania Prima |
PT Karimun Mining |
PT Kijang Jaya Mandiri |
PT Lautan Harmonis Sejahtera |
PT Menara Cipta Mulia |
PT Mitra Stania Prima |
PT Panca Mega Persada |
PT Premium Tin Indonesia |
PT Prima Timah Utama |
PT Rajehan Ariq |
PT Refined Bangka Tin |
PT Sariwiguna Binasentosa |
PT Stanindo Inti Perkasa |
PT Sukses Inti Makmur |
PT Sumber Jaya Indah |
PT Timah (Persero) Tbk Kundur |
PT Timah (Persero) Tbk Mentok |
PT Tinindo Inter Nusa |
PT Tommy Utama |
Resind Industria e Comercio Ltda. |
Rui Da Hung |
Soft Metais Ltda. |
Super Ligas |
Thaisarco |
Tuyen Quang Non-Ferrous Metals Joint Stock Company |
White Solder Metalurgia e Mineracao Ltda. |
Yunnan Chengfeng Non-ferrous Metals Co., Ltd. |
Yunnan Tin Company Limited |
Tungsten Smelters/Refiners |
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A.L.M.T. TUNGSTEN Corp. |
ACL Metais Eireli |
Asia Tungsten Products Vietnam Ltd. |
Chenzhou Diamond Tungsten Products Co., Ltd. |
Chongyi Zhangyuan Tungsten Co., Ltd. |
Fujian Jinxin Tungsten Co., Ltd. |
Ganzhou Haichuang Tungsten Co., Ltd. |
Ganzhou Huaxing Tungsten Products Co., Ltd. |
Ganzhou Jiangwu Ferrotungsten Co., Ltd. |
Ganzhou Seadragon W & Mo Co., Ltd. |
Ganzhou Yatai Tungsten Co., Ltd. |
Global Tungsten & Powders Corp. |
Guangdong Xianglu Tungsten Co., Ltd. |
H.C. Starck Smelting GmbH & Co. KG |
H.C. Starck Tungsten GmbH |
Hunan Chenzhou Mining Co., Ltd. |
Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji |
Hunan Chunchang Nonferrous Metals Co., Ltd. |
Hunan Litian Tungsten Industry Co., Ltd. |
Hydrometallurg, JSC |
Japan New Metals Co., Ltd. |
Jiangwu H.C. Starck Tungsten Products Co., Ltd. |
Jiangxi Dayu Longxintai Tungsten Co., Ltd. |
Jiangxi Gan Bei Tungsten Co., Ltd. |
Jiangxi Minmetals Gaoan Non-ferrous Metals Co., Ltd. |
Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. |
Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd. |
Jiangxi Yaosheng Tungsten Co., Ltd. |
Kennametal Fallon |
Kennametal Huntsville |
Malipo Haiyu Tungsten Co., Ltd. |
Moliren Ltd. |
Niagara Refining LLC |
Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC |
Philippine Chuangxin Industrial Co., Inc. |
South-East Nonferrous Metal Company Limited of Hengyang City |
Tejing (Vietnam) Tungsten Co., Ltd. |
Unecha Refractory metals plant |
Vietnam Youngsun Tungsten Industry Co., Ltd. |
Wolfram Bergbau und Hutten AG |
Woltech Korea Co., Ltd. |
Xiamen Tungsten (H.C.) Co., Ltd. |
Xiamen Tungsten Co., Ltd. |
Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. |
Xinhai Rendan Shaoguan Tungsten Co., Ltd. |
Table 2: Aggregated Countries of Origin |
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ANDORRA |
AUSTRALIA |
AUSTRIA |
BELGIUM |
BOLIVIA (PLURINATIONAL STATE OF) |
BRAZIL |
CANADA |
CHILE |
CHINA |
CZECH REPUBLIC |
ESTONIA |
FRANCE |
GERMANY |
INDIA |
INDONESIA |
ITALY |
JAPAN |
KAZAKHSTAN |
KOREA, REPUBLIC OF |
KYRGYZSTAN |
LITHUANIA |
MACEDONIA, THE FORMER YUGOSLAV REPUBLIC OF |
MALAYSIA |
MEXICO |
MYANMAR |
NETHERLANDS |
NEW ZEALAND |
PERU |
PHILIPPINES |
POLAND |
RUSSIAN FEDERATION |
SAUDI ARABIA |
SINGAPORE |
SOUTH AFRICA |
SPAIN |
SUDAN |
SWEDEN |
SWITZERLAND |
TAIWAN, PROVINCE OF CHINA |
THAILAND |
TURKEY |
UGANDA |
UNITED ARAB EMIRATES |
UNITED STATES OF AMERICA |
UZBEKISTAN |
VIET NAM |
ZAMBIA |
ZIMBABWE |