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 |
41-1681094 |
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(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, 2021.
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, 2021 to December 31, 2021, 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 13, 2022 |
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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 March 28, 2022
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: https://www.nortechsys.com/rmi-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.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 2021. |
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
JX Nippon Mining & Metals Co., Ltd.
Mitsubishi Materials Corporation
Sumitomo Metal Mining Co., Ltd.
Matsuda Sangyo Co., Ltd.
Tanaka Kikinzoku Kogyo K.K.
Kojima Chemicals Co., Ltd.
Metalor USA Refining Corporation
Royal Canadian Mint
Metalurgica Met-Mex Penoles S.A. De C.V.
Heraeus Metals Hong Kong Ltd.
Asahi Refining Canada Ltd.
Kennecott Utah Copper LLC
8853 S.p.A.
Advanced Chemical Company
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 USA Inc.
Asaka Riken Co., Ltd.
Aurubis AG
Bangalore Refinery
C. Hafner GmbH + Co. KG
Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
Boliden AB
CCR Refinery - Glencore Canada Corporation
Cendres + Metaux S.A.
Dowa
Chimet S.p.A.
Chugai Mining
Eco-System Recycling Co., Ltd. East Plant
DODUCO Contacts and Refining GmbH
DSC (Do Sung Corporation)
Eco-System Recycling Co., Ltd. North Plant
Eco-System Recycling Co., Ltd. West Plant
Emirates Gold DMCC
Geib Refining Corporation
Gold Refinery of Zijin Mining Group Co., Ltd.
Heimerle + Meule GmbH
Heraeus Germany GmbH Co. KG
Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.
Ishifuku Metal Industry Co., Ltd.
Istanbul Gold Refinery
Metalor Technologies (Suzhou) Ltd.
Italpreziosi
Torecom
Metalor Technologies (Hong Kong) Ltd.
Japan Mint
Metalor Technologies (Singapore) Pte., Ltd.
Jiangxi Copper Co., Ltd.
Metalor Technologies S.A.
JSC Novosibirsk Refinery
JSC Uralelectromed
Kazzinc
KGHM Polska Miedz Spolka Akcyjna
Korea Zinc Co., Ltd.
L'Orfebre S.A.
Ohura Precious Metal Industry Co., Ltd.
LS-NIKKO Copper Inc.
LT Metal Ltd.
Marsam Metals
Materion
Solar Applied Materials Technology Corp.
Western Australian Mint (T/a The Perth Mint)
Mitsui Mining and Smelting Co., Ltd.
MMTC-PAMP India Pvt., Ltd.
Moscow Special Alloys Processing Plant
Yamakin Co., Ltd.
Nadir Metal Rafineri San. Ve Tic. A.S.
Yokohama Metal Co., Ltd.
Navoi Mining and Metallurgical Combinat
Nihon Material Co., Ltd.
Umicore Precious Metals Thailand
Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH
Umicore S.A. Business Unit Precious Metals Refining
OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet)
PAMP S.A.
Planta Recuperadora de Metales SpA
Prioksky Plant of Non-Ferrous Metals
PT Aneka Tambang (Persero) Tbk
PX Precinox S.A.
Rand Refinery (Pty) Ltd.
REMONDIS PMR B.V.
SAAMP
Safimet S.p.A
SAFINA A.S.
Samduck Precious Metals
SAXONIA Edelmetalle GmbH
SEMPSA Joyeria Plateria S.A.
Shandong Gold Smelting 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
SungEel HiMetal Co., Ltd.
T.C.A S.p.A
Tokuriki Honten Co., Ltd.
TOO Tau-Ken-Altyn
United Precious Metal Refining, Inc.
Valcambi S.A.
WIELAND Edelmetalle GmbH
Zhongyuan Gold Smelter of Zhongjin Gold Corporation
Daye Non-Ferrous Metals Mining Ltd.
Hangzhou Fuchunjiang Smelting Co., Ltd.
Hunan Chenzhou Mining Co., Ltd.
Refinery of Seemine Gold Co., Ltd.
Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd.
Lingbao Gold Co., Ltd.
Lingbao Jinyuan Tonghui Refinery Co., Ltd.
Luoyang Zijin Yinhui Gold Refinery Co., Ltd.
Penglai Penggang Gold Industry Co., Ltd.
Shandong Tiancheng Biological Gold Industrial Co., Ltd.
Great Wall Precious Metals Co., Ltd. of CBPM
Tongling Nonferrous Metals Group Co., Ltd.
Guangdong Jinding Gold Limited
Shandong Humon Smelting Co., Ltd.
Degussa Sonne / Mond Goldhandel GmbH
GCC Gujrat Gold Centre Pvt. Ltd.
Sai Refinery
CGR Metalloys Pvt Ltd.
Sovereign Metals
Kazakhmys Smelting LLC
HwaSeong CJ CO., LTD.
Samwon Metals Corp.
State Research Institute Center for Physical Sciences and Technology
Caridad
Morris and Watson
Kyshtym Copper-Electrolytic Plant ZAO
International Precious Metal Refiners
Fujairah Gold FZC
Dijllah Gold Refinery FZC
Sabin Metal Corp.
Pease & Curren
QG Refining, LLC
Metal Concentrators SA (Pty) Ltd.
AU Traders and Refiners
Atasay Kuyumculuk Sanayi Ve Ticaret A.S.
JSC Ekaterinburg Non-Ferrous Metal Processing Plant
Fidelity Printers and Refiners Ltd.
Shenzhen Zhonghenglong Real Industry Co., Ltd.
African Gold Refinery
Gold Coast Refinery
TSK Pretech
Kyrgyzaltyn JSC
L'azurde Company For Jewelry
Shirpur Gold Refinery Ltd.
Yunnan Copper Industry Co., Ltd.
Industrial Refining Company
Guoda Safina High-Tech Environmental Refinery Co., Ltd.
C.I Metales Procesados Industriales SAS
Abington Reldan Metals, LLC
JALAN & Company
Sudan Gold Refinery
NH Recytech Company
K.A. Rasmussen
Augmont Enterprises Private Limited
Kundan Care Products Ltd.
MD Overseas
Kaloti Precious Metals
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)
Alexy Metals
Sellem Industries Ltd.
Metallix Refining Inc.
Modeltech Sdn Bhd
Sancus ZFS (L’Orfebre, SA)
WEEEREFINING
Value Trading
Tantalum Smelters/Refiners
Changsha South Tantalum Niobium Co., Ltd.
Exotech Inc.
F&X Electro-Materials Ltd.
Jiujiang Tanbre Co., Ltd.
LSM Brasil S.A.
Mineracao Taboca S.A.
Mitsui Mining and Smelting Co., Ltd.
Ningxia Orient Tantalum Industry Co., Ltd.
Solikamsk Magnesium Works OAO
Hengyang King Xing Lifeng New Materials Co., Ltd.
D Block Metals, LLC
FIR Metals & Resource Ltd.
XinXing HaoRong Electronic Material Co., Ltd.
KEMET de Mexico
TANIOBIS Co., Ltd.
TANIOBIS GmbH
H.C. Starck Hermsdorf GmbH
H.C. Starck Inc.
TANIOBIS Japan Co., Ltd.
TANIOBIS Smelting GmbH & Co. KG
Global Advanced Metals Boyertown
Global Advanced Metals Aizu
Resind Industria e Comercio Ltda.
JiuJiang JinXin Nonferrous Metals Co., Ltd.
XIMEI RESOURCES (GUANGDONG) LIMITED
Metallurgical Products India Pvt., Ltd.
QuantumClean
Yanling Jincheng Tantalum & Niobium Co., Ltd.
Taki Chemical Co., Ltd.
Telex Metals
Ulba Metallurgical Plant JSC
Jiujiang Zhongao Tantalum & Niobium Co., Ltd.
Jiangxi Dinghai Tantalum & Niobium Co., Ltd.
Jiangxi Tuohong New Raw Material
NPM Silmet AS
Meta Materials
Asaka Riken Co., Ltd.
Yancheng Jinye New Material Technology Co., Ltd.
Tin Smelters/Refiners
PT Babel Surya Alam Lestari
PT Bangka Serumpun
PT Menara Cipta Mulia
PT Mitra Stania Prima
PT Mitra Sukses Globalindo
PT Timah Tbk Kundur
PT Prima Timah Utama
Thaisarco
PT Rajawali Rimba Perkasa
PT Timah Tbk Mentok
Malaysia Smelting Corporation (MSC)
PT Refined Bangka Tin
Metallo Belgium N.V.
PT Stanindo Inti Perkasa
Mineracao Taboca S.A.
PT Timah Nusantara
Minsur
Operaciones Metalurgicas S.A.
PT Tinindo Inter Nusa
Resind Industria e Comercio Ltda.
Rui Da Hung
Soft Metais Ltda.
Thai Nguyen Mining and Metallurgy Co., Ltd.
Tin Technology & Refining
White Solder Metalurgia e Mineracao Ltda.
Yunnan Chengfeng Non-ferrous Metals Co., Ltd.
Yunnan Tin Company Limited
Yunnan Yunfan Non-ferrous Metals Co., Ltd.
Gejiu Non-Ferrous Metal Processing Co., Ltd.
Alpha
Mitsubishi Materials Corporation
PT ATD Makmur Mandiri Jaya
Fenix Metals
Dowa
EM Vinto
PT Artha Cipta Langgeng
Metallic Resources, Inc.
O.M. Manufacturing (Thailand) Co., Ltd.
Magnu's Minerais Metais e Ligas Ltda.
Melt Metais e Ligas S.A.
Gejiu Kai Meng Industry and Trade LLC
China Tin Group Co., Ltd.
Metallo Spain S.L.U.
Guangdong Hanhe Non-Ferrous Metal Co., Ltd.
Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.
CV Venus Inti Perkasa
Chifeng Dajingzi Tin Industry Co., Ltd.
Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.
Gejiu Zili Mining And Metallurgy Co., Ltd.
HuiChang Hill Tin Industry Co., Ltd.
Jiangxi New Nanshan Technology Ltd.
Luna Smelter, Ltd.
Ma'anshan Weitai Tin Co., Ltd.
O.M. Manufacturing Philippines, Inc.
Estanho de Rondonia S.A.
Super Ligas
Gejiu City Fuxiang Industry and Trade Co., Ltd.
Pongpipat Company Limited
CRM Synergies
CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda
Fabrica Auricchio Industria e Comercio Ltda.
PT Rajehan Ariq
PT Aries Kencana Sejahtera
Novosibirsk Processing Plant Ltd.
An Vinh Joint Stock Mineral Processing Company
Precious Minerals and Smelting Limited
Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company
Nghe Tinh Non-Ferrous Metals Joint Stock Company
Tuyen Quang Non-Ferrous Metals Joint Stock Company
CV Ayi Jaya
Dongguan CiEXPO Environmental Engineering Co., Ltd.
Modeltech Sdn Bhd
Gejiu Fengming Metallurgy Chemical Plant
VQB Mineral and Trading Group JSC
PT Lautan Harmonis Sejahtera
Tungsten Smelters/Refiners
A.L.M.T. Corp.
Kennametal Huntsville
Guangdong Xianglu Tungsten Co., Ltd.
Chongyi Zhangyuan Tungsten Co., Ltd.
Global Tungsten & Powders Corp.
Hunan Chenzhou Mining Co., Ltd.
Hunan Chunchang Nonferrous Metals Co., Ltd.
Japan New Metals Co., Ltd.
Ganzhou Huaxing Tungsten Products Co., Ltd.
Kennametal Fallon
Wolfram Bergbau und Hutten AG
Xiamen Tungsten Co., Ltd.
Ganzhou Jiangwu Ferrotungsten Co., Ltd.
Jiangxi Yaosheng Tungsten Co., Ltd.
Jiangxi Xinsheng Tungsten Industry Co., Ltd.
Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.
Malipo Haiyu Tungsten Co., Ltd.
Xiamen Tungsten (H.C.) Co., Ltd.
Jiangxi Gan Bei Tungsten Co., Ltd.
Chenzhou Diamond Tungsten Products Co., Ltd.
H.C. Starck Tungsten GmbH
TANIOBIS Smelting GmbH & Co. KG
Masan High-Tech Materials
Jiangwu H.C. Starck Tungsten Products Co., Ltd.
Niagara Refining LLC
Hydrometallurg, JSC
ACL Metais Eireli
Asia Tungsten Products Vietnam Ltd.
China Molybdenum Tungsten Co., Ltd.
Fujian Ganmin RareMetal Co., Ltd.
Ganzhou Haichuang Tungsten Co., Ltd.
Ganzhou Seadragon W & Mo Co., Ltd.
KGETS Co., Ltd.
Lianyou Metals Co., Ltd.
Moliren Ltd.
Philippine Chuangxin Industrial Co., Inc.
Unecha Refractory metals plant
Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.
CNMC (Guangxi) PGMA Co., Ltd.
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd.
JSC "Kirovgrad Hard Alloys Plant"
Cronimet Brasil Ltda
NPP Tyazhmetprom LLC
GEM Co., Ltd.
Albasteel Industria e Comercio de Ligas Para Fundicao Ltd.
Artek LLC
Woltech Korea Co., Ltd.
Hunan Litian Tungsten Industry Co., Ltd.
Fujian Xinlu Tungsten
OOO “Technolom” 2
OOO “Technolom” 1
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
BELGIUM
NORWAY
KAZAKHSTAN
POLAND
KYRGYZSTAN
SAUDI ARABIA
ANDORRA
SINGAPORE
MALAYSIA
NEW ZEALAND
AUSTRIA
CHILE
INDONESIA
NETHERLANDS
FRANCE
CZECHIA
MAURITANIA
SPAIN
TAIWAN, PROVINCE OF CHINA
LITHUANIA
SUDAN
THAILAND
NORTH MACEDONIA, REPUBLIC OF
ESTONIA
VIET NAM
BOLIVIA (PLURINATIONAL STATE OF)
PERU
RWANDA
MYANMAR