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 |
0-13257 |
41-16810894 |
||
(State or other jurisdiction |
(Commission |
IRS Employer |
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of incorporation) |
File Number) |
Identification No.) |
7050 Meridian Circle N, Suite 150
Maple Grove, MN 55369
(Address of principal executive offices)
(952) 345-2244
(Registrant’s 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:
☒ Rule 13p-1 under the Securities Exchange Act (17CFR 240.13p-1) for the reporting period from January 1 to December 31, 2020.
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, 2020 to December 31, 2020, which is provided as an Exhibit hereto and is publicly available at http://www.nortechsys.com.
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 19, 2021 |
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Nortech Systems Incorporated |
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(Registrant) |
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/s/ Christopher D. Jones |
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Christopher D. Jones, SVP and Chief Financial Officer |
Exhibit 1.01
Conflict Minerals Report for the year ended December 31, 2020
Nortech Systems, Inc. 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.
Nortech’s 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.
Nortech's policy regarding Conflict Minerals was communicated to employees internally and to suppliers externally via email 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 Nortech's 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 over 90% 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 nonresponsive 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 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 RMI. 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, African Gold Refinery, and Fidelity Printers and Refiners as sources of gold in their supply chains. These refineries are not audited by the RMI 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. If we determine that material sourced from these facilities is present in Nortech's 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 RMI CMRT. |
Third Party Audits of Processing Facilities
• |
Nortech does not conduct audits of smelters or refiners. We support the Responsible Mineral Initiative's 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.comDeclaration |
• |
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 2020. |
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 RMI. 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
8853 S.p.A. |
Abington Reldan Metals, LLC |
Advanced Chemical Company |
African Gold Refinery |
Western Australian Mint (T/a The Perth Mint) |
Aida Chemical Industries Co., Ltd. |
Dowa |
Al Etihad Gold Refinery DMCC |
Alexy Metals |
Allgemeine Gold-und Silberscheideanstalt A.G. |
Almalyk Mining and Metallurgical Complex (AMMC) |
Asahi Pretec Corp. |
AngloGold Ashanti Corrego do Sitio Mineracao |
Tongling Nonferrous Metals Group Co., Ltd. |
Argor-Heraeus S.A. |
Asahi Refining Canada Ltd. |
Asahi Refining USA Inc. |
Asaka Riken Co., Ltd. |
Atasay Kuyumculuk Sanayi Ve Ticaret A.S. |
AU Traders and Refiners |
Augmont Enterprises Private Limited |
Aurubis AG |
Bangalore Refinery |
Bangko Sentral ng Pilipinas (Central Bank of the Philippines) |
Boliden AB |
C. Hafner GmbH + Co. KG |
C.I Metales Procesados Industriales SAS |
Caridad |
CCR Refinery - Glencore Canada Corporation |
Cendres + Metaux S.A. |
CGR Metalloys Pvt Ltd. |
Yunnan Copper Industry Co., Ltd. |
Chimet S.p.A. |
Zhongyuan Gold Smelter of Zhongjin Gold Corporation |
Shandong Gold Smelting Co., Ltd. |
Chugai Mining |
Daye Non-Ferrous Metals Mining Ltd. |
Degussa Sonne / Mond Goldhandel GmbH |
Dijllah Gold Refinery FZC |
DSC (Do Sung Corporation) |
DODUCO Contacts and Refining GmbH |
TSK Pretech |
Eco-System Recycling Co., Ltd. East Plant |
Eco-System Recycling Co., Ltd. North Plant |
Eco-System Recycling Co., Ltd. West Plant |
JSC Ekaterinburg Non-Ferrous Metal Processing Plant |
Emerald Jewel Industry India Limited (Unit 1) |
Emerald Jewel Industry India Limited (Unit 2) |
Emerald Jewel Industry India Limited (Unit 3) |
Emerald Jewel Industry India Limited (Unit 4) |
Emirates Gold DMCC |
Moscow Special Alloys Processing Plant |
Fidelity Printers and Refiners Ltd. |
JSC Novosibirsk Refinery |
Fujairah Gold FZC |
Gold Refinery of Zijin Mining Group Co., Ltd. |
GCC Gujrat Gold Centre Pvt. Ltd. |
Geib Refining Corporation |
Gold Coast Refinery |
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. |
LT Metal Ltd. |
Heimerle + Meule GmbH |
Heraeus Germany GmbH Co. KG |
Heraeus Metals Hong Kong Ltd. |
Hunan Chenzhou Mining Co., Ltd. |
Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd. |
HwaSeong CJ CO., LTD. |
Industrial Refining Company |
Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. |
International Precious Metal Refiners |
Ishifuku Metal Industry Co., Ltd. |
Istanbul Gold Refinery |
Italpreziosi |
JALAN & Company |
Japan Mint |
Jiangxi Copper Co., Ltd. |
JSC Uralelectromed |
JX Nippon Mining & Metals Co., Ltd. |
K.A. Rasmussen |
Kaloti Precious Metals |
Kazakhmys Smelting LLC |
Kazzinc |
Kennecott Utah Copper LLC |
KGHM Polska Miedz Spolka Akcyjna |
Kojima Chemicals Co., Ltd. |
Korea Zinc Co., Ltd. |
Kundan Care Products Ltd. |
Kyrgyzaltyn JSC |
Kyshtym Copper-Electrolytic Plant ZAO |
L'azurde Company For Jewelry |
Lingbao Gold Co., Ltd. |
Lingbao Jinyuan Tonghui Refinery Co., Ltd. |
L'Orfebre S.A. |
LS-NIKKO Copper Inc. |
Luoyang Zijin Yinhui Gold Refinery Co., Ltd. |
Marsam Metals |
Materion |
Matsuda Sangyo Co., Ltd. |
MD Overseas |
Sumitomo Metal Mining Co., Ltd. |
Metal Concentrators SA (Pty) Ltd. |
Metalurgica Met-Mex Penoles S.A. De C.V. |
Metallix Refining Inc. |
Umicore S.A. Business Unit Precious Metals Refining |
Metalor Technologies S.A. |
Metalor Technologies (Hong Kong) Ltd. |
Metalor Technologies (Singapore) Pte., Ltd. |
Metalor Technologies (Suzhou) Ltd. |
Metalor USA Refining Corporation |
Mitsubishi Materials Corporation |
Mitsui Mining and Smelting Co., Ltd. |
MMTC-PAMP India Pvt., Ltd. |
Modeltech Sdn Bhd |
Morris and Watson |
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) |
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. |
QG Refining, LLC |
Rand Refinery (Pty) Ltd. |
Refinery of Seemine Gold Co., Ltd. |
REMONDIS PMR B.V. |
Royal Canadian Mint |
SAAMP |
Sabin Metal Corp. |
Safimet S.p.A |
SAFINA A.S. |
Sai Refinery |
Samduck Precious Metals |
Samwon Metals Corp. |
Sancus ZFS (L’Orfebre, SA) |
SAXONIA Edelmetalle GmbH |
Sellem Industries Ltd. |
SEMPSA Joyeria Plateria S.A. |
Shandong Humon Smelting Co., Ltd. |
Shandong Tiancheng Biological Gold Industrial Co., Ltd. |
Shandong Zhaojin Gold & Silver Refinery Co., Ltd. |
Shenzhen Zhonghenglong Real Industry Co., Ltd. |
Shirpur Gold Refinery Ltd. |
Tanaka Kikinzoku Kogyo K.K. |
SOE Shyolkovsky Factory of Secondary Precious Metals |
Sichuan Tianze Precious Metals Co., Ltd. |
Singway Technology Co., Ltd. |
Solar Applied Materials Technology Corp. |
Sovereign Metals |
State Research Institute Center for Physical Sciences and Technology |
Sudan Gold Refinery |
SungEel HiMetal Co., Ltd. |
Super Dragon Technology Co., Ltd. |
T.C.A S.p.A |
Tokuriki Honten Co., Ltd. |
TOO Tau-Ken-Altyn |
Torecom |
Umicore Precious Metals Thailand |
United Precious Metal Refining, Inc. |
Valcambi S.A. |
WIELAND Edelmetalle GmbH |
Yamakin Co., Ltd. |
Yokohama Metal Co., Ltd. |
Tantalum Smelters/Refiners
AMG Brasil |
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 |
XIMEI RESOURCES (GUANGDONG) LIMITED |
TANIOBIS Co., Ltd. |
H.C. Starck Hermsdorf GmbH |
H.C. Starck Inc. |
TANIOBIS Japan Co., Ltd. |
TANIOBIS Smelting GmbH & Co. KG |
TANIOBIS GmbH |
Hengyang King Xing Lifeng New Materials Co., Ltd. |
Jiangxi Dinghai Tantalum & Niobium Co., Ltd. |
Jiangxi Tuohong New Raw Material |
JiuJiang JinXin Nonferrous Metals Co., Ltd. |
Jiujiang Tanbre Co., Ltd. |
Jiujiang Zhongao Tantalum & Niobium Co., Ltd. |
KEMET de Mexico |
Meta Materials |
Metallurgical Products India Pvt., Ltd. |
Mineracao Taboca S.A. |
Mitsui Mining and Smelting Co., Ltd. |
NPM Silmet AS |
Ningxia Orient Tantalum Industry Co., Ltd. |
QuantumClean |
Resind Industria e Comercio Ltda. |
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
Alpha |
An Vinh Joint Stock Mineral Processing Company |
PT Bukit Timah |
PT Refined Bangka Tin |
Yunnan Chengfeng Non-ferrous Metals Co., Ltd. |
Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. |
Chifeng Dajingzi Tin Industry Co., Ltd. |
China Tin Group Co., Ltd. |
Yunnan Tin Company Limited |
CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda |
CRM Synergies |
CV Ayi Jaya |
PT Aries Kencana Sejahtera |
PT Rajehan Ariq |
CV Venus Inti Perkasa |
Dongguan CiEXPO Environmental Engineering Co., Ltd. |
Dowa |
Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company |
EM Vinto |
Estanho de Rondonia S.A. |
Fenix Metals |
Minsur |
Gejiu City Fuxiang Industry and Trade Co., Ltd. |
Gejiu Fengming Metallurgy Chemical Plant |
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. |
HuiChang Hill Tin Industry Co., Ltd. |
PT Timah Tbk Mentok |
Jiangxi New Nanshan Technology Ltd. |
PT Timah Tbk Kundur |
Luna Smelter, Ltd. |
Ma'anshan Weitai Tin Co., Ltd. |
Magnu's 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. |
VQB Mineral and Trading Group JSC |
Mitsubishi Materials Corporation |
Modeltech Sdn Bhd |
Nghe Tinh Non-Ferrous Metals Joint Stock Company |
Novosibirsk Processing Plant Ltd. |
O.M. Manufacturing (Thailand) Co., Ltd. |
O.M. Manufacturing Philippines, Inc. |
Operaciones Metalurgicas S.A. |
Pongpipat Company Limited |
Precious Minerals and Smelting Limited |
PT Artha Cipta Langgeng |
PT ATD Makmur Mandiri Jaya |
PT Babel Inti Perkasa |
PT Babel Surya Alam Lestari |
PT Bangka Serumpun |
PT Cipta Persada Mulia |
PT Lautan Harmonis Sejahtera |
PT Menara Cipta Mulia |
PT Mitra Stania Prima |
PT Mitra Sukses Globalindo |
PT Prima Timah Utama |
PT Rajawali Rimba Perkasa |
PT Stanindo Inti Perkasa |
PT Sukses Inti Makmur |
PT Timah Nusantara |
PT Tinindo Inter Nusa |
Resind Industria e Comercio Ltda. |
Rui Da Hung |
Soft Metais Ltda. |
Super Ligas |
Thai Nguyen Mining and Metallurgy Co., Ltd. |
Thaisarco |
Tin Technology & Refining |
Tuyen Quang Non-Ferrous Metals Joint Stock Company |
White Solder Metalurgia e Mineracao Ltda. |
Yunnan Yunfan Non-ferrous Metals Co., Ltd. |
Tungsten Smelters/Refiners
A.L.M.T. Corp. |
ACL Metais Eireli |
Albasteel Industria e Comercio de Ligas Para Fundicao Ltd. |
Artek LLC |
Asia Tungsten Products Vietnam Ltd. |
Kennametal Huntsville |
Guangdong Xianglu Tungsten Co., Ltd. |
Chenzhou Diamond Tungsten Products Co., Ltd. |
China Molybdenum Tungsten Co., Ltd. |
Ganzhou Huaxing Tungsten Products Co., Ltd. |
Chongyi Zhangyuan Tungsten Co., Ltd. |
CNMC (Guangxi) PGMA Co., Ltd. |
Cronimet Brasil Ltda |
Fujian Ganmin RareMetal Co., Ltd. |
Ganzhou Haichuang Tungsten Co., Ltd. |
Ganzhou Jiangwu Ferrotungsten Co., Ltd. |
Ganzhou Seadragon W & Mo Co., Ltd. |
GEM Co., Ltd. |
Global Tungsten & Powders Corp. |
TANIOBIS Smelting GmbH & Co. KG |
H.C. Starck Tungsten GmbH |
Hunan Chunchang Nonferrous Metals Co., Ltd. |
Hunan Chenzhou Mining Co., Ltd. |
Hydrometallurg, JSC |
Japan New Metals Co., Ltd. |
Jiangwu H.C. Starck Tungsten Products Co., Ltd. |
Jiangxi Gan Bei Tungsten Co., Ltd. |
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. |
Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. |
Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
Jiangxi Yaosheng Tungsten Co., Ltd. |
JSC "Kirovgrad Hard Alloys Plant" |
Kennametal Fallon |
KGETS Co., Ltd. |
Lianyou Metals Co., Ltd. |
Malipo Haiyu Tungsten Co., Ltd. |
Masan High-Tech Materials |
Moliren Ltd. |
Niagara Refining LLC |
NPP Tyazhmetprom LLC |
Philippine Chuangxin Industrial Co., Inc. |
Unecha Refractory metals plant |
Wolfram Bergbau und Hutten AG |
Xiamen Tungsten (H.C.) Co., Ltd. |
Xiamen Tungsten Co., Ltd. |
Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. |
Table 2: Aggregated Countries of Origin
ITALY |
UNITED STATES OF AMERICA |
UGANDA |
AUSTRALIA |
JAPAN |
UNITED ARAB EMIRATES |
GERMANY |
UZBEKISTAN |
BRAZIL |
CHINA |
SWITZERLAND |
CANADA |
TURKEY |
SOUTH AFRICA |
INDIA |
PHILIPPINES |
SWEDEN |
COLOMBIA |
MEXICO |
KOREA, REPUBLIC OF |
RUSSIAN FEDERATION |
ZIMBABWE |
GHANA |
KAZAKHSTAN |
POLAND |
KYRGYZSTAN |
SAUDI ARABIA |
ANDORRA |
BELGIUM |
SINGAPORE |
MALAYSIA |
NEW ZEALAND |
AUSTRIA |
CHILE |
INDONESIA |
NETHERLANDS |
FRANCE |
CZECHIA |
SPAIN |
TAIWAN, PROVINCE OF CHINA |
LITHUANIA |
SUDAN |
THAILAND |
ESTONIA |
NORTH MACEDONIA |
VIET NAM |
BOLIVIA (PLURINATIONAL STATE OF) |
PERU |
RWANDA |
MYANMAR |
Norway |
Mauritania |