EX-1.01 2 d590333dex101.htm EX-1.01 EX-1.01

EXHIBIT 1.01

DORMAN PRODUCTS, INC.

Conflict Minerals Report

Explanatory Note

This Conflict Minerals Report (the “Report”) of Dorman Products, Inc. (the “Company,” “we,” “us,” or “our”) has been prepared pursuant to Rule 13p-1 and Form SD (the “Rule”) promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period January 1, 2017 to December 31, 2017 (the “Reporting Period”).

The Rule requires disclosure of certain information when a company manufactures or contracts to manufacture products and the minerals specified in the Rule are necessary to the functionality or production of those products. The specified minerals, which are collectively referred to in this Report as “Conflict Minerals,” are gold, columbite-tantalite (coltan), cassiterite and wolframite, including their derivatives, which are limited to metallic forms of tantalum, tin and tungsten. The “Covered Countries” for the purposes of the Rule and this Report are the Democratic Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola. As described in this Report, Conflict Minerals are necessary to the functionality of certain of the Company’s products that the Company contracts to manufacture.

Company and the Product Overview

 

  I. Introduction

The Company is a supplier of replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket, many of which the Company designs and engineers. During calendar year 2017 all of our products were manufactured in third party vendor facilities (referred to hereafter as “contract manufacturers”). This Report relates to products (i) for which conflict minerals are necessary to the functionality or production of those products, (ii) that were contracted for manufacture by Dorman, and (iii) for which the manufacture was completed during calendar year 2017 (the “Covered Products”). The Covered Products include products in the following product categories:

Power-train products which includes intake and exhaust manifolds, cooling products, harmonic balancers, fluid lines, fluid reservoirs, connectors, 4 wheel drive components and axles, drain plugs, and other engine, transmission and axle components.

Automotive body products which includes door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior automotive body components.


Chassis products which includes brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and other suspension, steering and brake components.

Hardware products which includes threaded bolts, auto body and home fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise.

The Company’s supply chain with respect to the Covered Products is complex and there are many parties in the supply chain between the contract manufacturer of the Covered Products and the original source of the Conflict Minerals. We do not purchase Conflict Minerals directly from mines or smelters/refiners. Rather, we rely on the manufacturers to acquire the raw materials necessary for the Covered Products. The Company must therefore rely on its supply chain to provide information regarding the origin of the Conflict Minerals that are included in the Covered Products. Additionally, we believe that the smelters/refiners of the Conflict Minerals are best suited to identify the sources of such minerals, and we have requested that our vendors take steps to identify the applicable smelters/refiners of the Conflict Minerals in our supply chain.

 

  II. Reasonable Country of Origin Inquiry

The Company conducted a good faith Reasonable Country of Origin Inquiry (“RCOI”) with respect to the Conflict Minerals included in the Covered Products. Such RCOI was reasonably designed to determine whether any of the Conflict Minerals included in the Covered Products may have originated in the Covered Countries and whether any of the Conflict Minerals may be from scrap or recycled sources.

We began this year’s RCOI by using internal product expertise to update our list of products that we contract to manufacture which may contain Conflict Minerals. We then identified the names of our largest thirty nine vendors that accounted for 85% by dollars spent on Covered Products from whom we contracted to manufacture such products. Once identified, we sent each such vendor a Conflict Minerals reporting template (described below) and a letter with instructions on how to complete the reporting template. We have adopted the Conflict Minerals Reporting Template (the “Template”) developed by the Responsible Minerals Initiative, formerly the Electronic Industry Citizenship Coalition and the Global e-Sustainability Initiative, as a standard questionnaire for conducting inquiries into our vendors’ sources of metals. This Template was created as a common means for the collection of sourcing information related to Conflict Minerals. As a part of this process, we provided assistance to vendors about the specifics of the Rule and the information requested by the Template, including the types of evidence/documents that vendors could use to find/back-up their answers in the Template.

In completing the Template, vendors were asked, among other questions, whether the products or components they supplied to us or manufactured for us contained Conflict Minerals; the origin of such Conflict Minerals; to identify the sources of Conflict Minerals from their lower tier level suppliers; to determine the smelter/refiner or mine origin or whether the Conflict


Minerals were sourced from scrap or recycled sources. The vendors were asked to return a copy of the Template once completed. Upon return of the Template, responses from vendors were evaluated for completeness, consistency, plausibility, and gaps in information. If information on a Template returned from a vendor appeared to be incomplete, incorrect, or not trustworthy, our purchasing team returned the Template to the vendor by email with a request to complete or correct the questionable information.

Through our RCOI, some of our vendors disclosed to us that scrap/recycled sources of Conflict Minerals were identified in their supply chains and did not require due diligence. After reviewing the balance of the results of our RCOI and comparing the smelters/refiners identified in the supply-chain survey against verified lists produced by the Responsible Minerals Initiative (RMI), we determined that we had reason to believe that some of the Conflict Minerals necessary for the functionality of our Covered Products may have originated in a Covered Country. Therefore, we determined that the Rule required that we exercise due diligence on the source and chain of custody of such Conflict Minerals.

 

  III. Design of Due Diligence Framework

We designed our due diligence framework to conform in all material respects with the OECD (2016) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Third Edition.

 

  IV. Due Diligence Measures Performed by the Company

The due diligence measures that we performed for Covered Products included, but were not limited to, the following:

 

    Maintaining a multi-disciplinary internal team to implement our Conflict Minerals due diligence measures. Our Conflict Minerals project team is headed by our Vice President of Purchasing and includes members from our supply chain, engineering, quality, finance and legal departments. The team met twice during the Reporting Period to discuss the due diligence process and progress.

 

    Communicating our Conflict Minerals Policy Statement (the “Conflict Minerals Policy”) to our vendors. A copy of the Company’s Conflict Minerals Policy is available at www.dormanproducts.com. The content of any website referred to in this Report is included for general information only and is not incorporated by reference into this Form SD.

 

    Maintaining a database which was internally developed to store our supply chain Conflict Minerals records, including all returned Templates. All team members have access to this database.

 

    Including contractual provisions in agreements with our vendors that require the vendor to abide by the terms of the Company’s Conflict Mineral Policy.

 

    Reporting to senior management on vendors’ responses to our Conflict Minerals information requests.


    Using a third party service, compared smelters/refiners identified by vendors to the RMI lists of validated conflict free facilities and conducted our own supplemental research on smelters/refiners.

Appendix A contains a list of known smelters/refiners reported by the Company’s vendors which may have been used to process the Conflict Minerals utilized in the Covered Products. Based on the information obtained pursuant to the due diligence process, the Company does not have sufficient information with respect to those Covered Products purchased from its vendors to determine the country of origin of the Conflict Minerals in all Covered Products. At the same time, to the extent that vendors supplied information, the Company received no information from its vendors indicating that the Conflict Minerals in the Company’s Covered Products directly or indirectly financed or benefitted armed groups in the Covered Countries. In some cases information was provided to us for the entire supply chain of a vendor, and was not necessarily limited to facilities that have been confirmed to contribute necessary Conflict Minerals to a Covered Product. Accordingly, we have been unable to definitely link the identified smelters/refiners to only those products/materials in our supply chain; therefore our smelter/refiner list likely contains more processing facilities than are actually in our supply chain or Covered Products. However, based on the information that was obtained, the Company has reasonably determined that countries of origin of the Conflict Minerals may include the countries listed within Appendix A.

We are a downstream indirect purchaser of Conflict Minerals. Accordingly, the efforts we have undertaken to identify the source and chain of custody of the Conflict Minerals in our products reflect our circumstances and position in the supply chain. As a result, our inquiry can provide only reasonable, not absolute, assurance regarding the source and chain of custody of the Conflict Minerals necessary to the functionality of the Covered Products. Our process relies on data obtained directly from our vendors who seek similar information within their supply chain to identify the original sources of the necessary Conflict Minerals. Such sources of information may yield inaccurate or incomplete information.

 

  V. Steps to Further Mitigate Risk and Improve Due Diligence in 2018

The Company expects to take the following steps, among others, to improve its due diligence measures and to further mitigate the risk that the necessary Conflict Minerals contained in the Company’s products finance or benefit armed groups in the Covered Countries:

 

    the Company will continue to engage with vendors in its supply chain to improve the completeness and accuracy of information provided to the Company;

 

    the Company will continue to monitor changes in vendor circumstances that may impact their compliance with the Company’s Conflict Minerals Policy, and in turn may impact the Company’s continued engagement of and relationship with certain vendors;


    the Company will continue to review new vendors for compliance with the Company’s Conflict Minerals Policy during the initial business review of each new vendor;

 

    the Company will continue to encourage its vendors to take similar measures with their suppliers to ensure alignment with the Company’s sourcing philosophy throughout the supply chain;

 

    the Company will continue to encourage its vendors to have only verified “conflict free” sources; and

 

    the Company will continue to engage, through a third party service or through its supply chain, with the smelters/refiners set forth on Appendix A and others that may be identified in 2018 in order to identify the country of origin and mine or location of origin of the Conflict Minerals in the Covered Products.


APPENDIX A

SMELTERS/REFINERS

Set forth below are known smelters/refiners reported by the Company’s vendors which may have been used to process the Conflict Minerals utilized in the Covered Products (“Vendor-Reported Facilities”). Table 1 consists of the Vendor-Reported Facilities for which we were able to obtain country of origin information. Table 2 consists of the Vendor-Reported Facilities for which we were unable to obtain country of origin information.

Table 1

We identified country of origin information for the following Vendor-Reported Facilities (i) that have achieved Conflict Free designation by the Responsible Minerals Initiative (RMI) or an audit program with which RMI has mutual recognition, (ii) that are actively in the process of obtaining the designations; or (iii) through independent research on such Vendor-Reported Facilities.

 

Metal    Smelter/Facility
Gold    Advanced Chemical Company
Gold    Aida Chemical Industries Co., Ltd.
Gold    Allgemeine Gold-und Silberscheideanstalt A.G.
Gold    Almalyk Mining and Metallurgical Complex (AMMC)
Gold    AngloGold Ashanti Corrego do Sitio Mineracao
Gold    Argor-Heraeus S.A.
Gold    Asahi Pretec Corp.
Gold    Asahi Refining Canada Ltd.
Gold    Asahi Refining USA Inc.
Gold    Asaka Riken Co., Ltd.
Gold    Aurubis AG
Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
Gold    Boliden AB
Gold    C. Hafner GmbH + Co. KG
Gold    CCR Refinery – Glencore Canada Corporation
Gold    Chimet S.p.A.
Gold    DODUCO Contacts and Refining GmbH
Gold    Dowa
Gold    DSC (Do Sung Corporation)
Gold    Eco-System Recycling Co., Ltd.
Gold    Gold Refinery of Zijin Mining Group Co., Ltd.
Gold    Heimerle + Meule GmbH
Gold    Heraeus Metals Hong Kong Ltd.
Gold    Heraeus Precious Metals GmbH & Co. KG
Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.
Gold    Ishifuku Metal Industry Co., Ltd.
Gold    Istanbul Gold Refinery
Gold    Japan Mint
Gold    Jiangxi Copper Co., Ltd.
Gold    JSC Ekaterinburg Non-Ferrous Metal Processing Plant
Gold    JSC Uralelectromed
Gold    JX Nippon Mining & Metals Co., Ltd.
Gold    Kazzinc
Gold    Kennecott Utah Copper LLC
Gold    Kojima Chemicals Co., Ltd.


Metal    Smelter/Facility
Gold    Kyrgyzaltyn JSC
Gold    LS-NIKKO Copper Inc.
Gold    Materion
Gold    Matsuda Sangyo Co., Ltd.
Gold    Metalor Technologies (Hong Kong) Ltd.
Gold    Metalor Technologies (Singapore) Pte., Ltd.
Gold    Metalor Technologies (Suzhou) Ltd.
Gold    Metalor Technologies S.A.
Gold    Metalor USA Refining Corporation
Gold    Metalurgica Met-Mex Penoles S.A. De C.V.
Gold    Mitsubishi Materials Corporation
Gold    Mitsui Mining and Smelting Co., Ltd.
Gold    MMTC-PAMP India Pvt., Ltd.
Gold    Moscow Special Alloys Processing Plant
Gold    Nadir Metal Rafineri San. Ve Tic. A.S.
Gold    Nihon Material Co., Ltd.
Gold    Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH
Gold    Ohura Precious Metal Industry Co., Ltd.
Gold    OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)
Gold    OJSC Novosibirsk Refinery
Gold    PAMP S.A.
Gold    Prioksky Plant of Non-Ferrous Metals
Gold    PT Aneka Tambang (Persero) Tbk
Gold    PX Precinox S.A.
Gold    Rand Refinery (Pty) Ltd.
Gold    Republic Metals Corporation
Gold    Royal Canadian Mint
Gold    Samduck Precious Metals
Gold    SEMPSA Joyeria Plateria S.A.
Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.
Gold    Sichuan Tianze Precious Metals Co., Ltd.
Gold    Singway Technology Co., Ltd.
Gold    SOE Shyolkovsky Factory of Secondary Precious Metals
Gold    Solar Applied Materials Technology Corp.
Gold    Sumitomo Metal Mining Co., Ltd.
Gold    T.C.A S.p.A
Gold    Tanaka Kikinzoku Kogyo K.K.
Gold    The Refinery of Shandong Gold Mining Co., Ltd.
Gold    Tokuriki Honten Co., Ltd.
Gold    Torecom
Gold    Umicore Brasil Ltda.
Gold    Umicore Precious Metals Thailand
Gold    Umicore S.A. Business Unit Precious Metals Refining
Gold    United Precious Metal Refining, Inc.
Gold    Valcambi S.A.
Gold    Western Australian Mint (T/a The Perth Mint)
Gold    WIELAND Edelmetalle GmbH
Gold    Yamakin Co., Ltd.
Gold    Yokohama Metal Co., Ltd.
Gold    Zhongyuan Gold Smelter of Zhongjin Gold Corporation
Tantalum    Changsha South Tantalum Niobium Co., Ltd.


Metal    Smelter/Facility
Tantalum    Exotech Inc.
Tantalum    F&X Electro-Materials Ltd.
Tantalum    Global Advanced Metals Aizu
Tantalum    Global Advanced Metals Boyertown
Tantalum    Guangdong Rising Rare Metals-EO Materials Ltd.
Tantalum    Guangdong Zhiyuan New Material Co., Ltd.
Tantalum    H.C. Starck Co., Ltd.
Tantalum    H.C. Starck Hermsdorf GmbH
Tantalum    H.C. Starck Inc.
Tantalum    H.C. Starck Ltd.
Tantalum    H.C. Starck Tantalum and Niobium GmbH
Tantalum    Hengyang King Xing Lifeng New Materials Co., Ltd.
Tantalum    JiuJiang JinXin Nonferrous Metals Co., Ltd.
Tantalum    Jiujiang Nonferrous Metals Smelting Company Limited
Tantalum    KEMET Blue Metals
Tantalum    Kemet Blue Powder
Tantalum    LSM Brasil S.A.
Tantalum    Metallurgical Products India Pvt., Ltd.
Tantalum    Mineracao Taboca S.A.
Tantalum    Mitsui Mining and Smelting Co., Ltd.
Tantalum    Ningxia Orient Tantalum Industry Co., Ltd.
Tantalum    NPM Silmet AS
Tantalum    QuantumClean
Tantalum    Solikamsk Magnesium Works OAO
Tantalum    Taki Chemical Co., Ltd.
Tantalum    Ulba Metallurgical Plant JSC
Tin    Alpha
Tin    Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.
Tin    China Tin Group Co., Ltd.
Tin    CV Ayi Jaya
Tin    CV Dua Sekawan
Tin    CV Gita Pesona
Tin    CV United Smelting
Tin    CV Venus Inti Perkasa
Tin    Dowa
Tin    EM Vinto
Tin    Fenix Metals
Tin    Gejiu Jinye Mineral Company
Tin    Gejiu Kai Meng Industry and Trade LLC
Tin    Gejiu Non-Ferrous Metal Processing Co., Ltd.
Tin    Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.
Tin    Guangdong Hanhe Non-Ferrous Metal Co., Ltd.
Tin    Guanyang Guida Nonferrous Metal Smelting Plant
Tin    Huichang Jinshunda Tin Co., Ltd.
Tin    Jiangxi Ketai Advanced Material Co., Ltd.
Tin    Jiangxi New Nanshan Technology Ltd.
Tin    Magnu’s Minerais Metais e Ligas Ltda.
Tin    Malaysia Smelting Corporation (MSC)
Tin    Melt Metais e Ligas S.A.
Tin    Metallic Resources, Inc.
Tin    Metallo Belgium N.V.
Tin    Metallo Spain S.L.U.


Metal    Smelter/Facility
Tin    Mineracao Taboca S.A.
Tin    Minsur
Tin    Mitsubishi Materials Corporation
Tin    O.M. Manufacturing (Thailand) Co., Ltd.
Tin    O.M. Manufacturing Philippines, Inc.
Tin    Operaciones Metalurgical S.A.
Tin    PT Aries Kencana Sejahtera
Tin    PT Artha Cipta Langgeng
Tin    PT ATD Makmur Mandiri Jaya
Tin    PT Babel Inti Perkasa
Tin    PT Bangka Prima Tin
Tin    PT Bangka Tin Industry
Tin    PT Belitung Industri Sejahtera
Tin    PT Bukit Timah
Tin    PT DS Jaya Abadi
Tin    PT Eunindo Usaha Mandiri
Tin    PT Inti Stania Prima
Tin    PT Karimun Mining
Tin    PT Kijang Jaya Mandiri
Tin    PT Lautan Harmonis Sejahtera
Tin    PT Menara Cipta Mulia
Tin    PT Mitra Stania Prima
Tin    PT Panca Mega Persada
Tin    PT Premium Tin Indonesia
Tin    PT Prima Timah Utama
Tin    PT Rajehan Ariq
Tin    PT Refined Bangka Tin
Tin    PT Sariwiguna Binasentosa
Tin    PT Stanindo Inti Perkasa
Tin    PT Sukses Inti Makmur
Tin    PT Sumber Jaya Indah
Tin    PT Timah (Persero) Tbk Kundur
Tin    PT Timah (Persero) Tbk Mentok
Tin    PT Tinindo Inter Nusa
Tin    PT Tommy Utama
Tin    Resind Industria e Comercio Ltda.
Tin    Rui Da Hung
Tin    Soft Metais Ltda.
Tin    Thaisarco
Tin    White Solder Metalurgia e Mineracao Ltda.
Tin    Yunnan Chengfeng Non-ferrous Metals Co., Ltd.
Tin    Yunnan Tin Company Limited
Tungsten    A.L.M.T. TUNGSTEN Corp.
Tungsten    Chenzhou Diamond Tungsten Products Co., Ltd.
Tungsten    Chongyi Zhangyuan Tungsten Co., Ltd.
Tungsten    Fujian Jinxin Tungsten Co., Ltd.
Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.
Tungsten    Ganzhou Jiangwu Ferrotungsten Co., Ltd.
Tungsten    Ganzhou Seadragon W & Mo Co., Ltd.
Tungsten    Global Tungsten & Powders Corp.
Tungsten    Guangdong Xianglu Tungsten Co., Ltd.
Tungsten    H.C. Starck Smelting GmbH & Co. KG


Metal    Smelter/Facility
Tungsten    H.C. Starck Tungsten GmbH
Tungsten    Hunan Chenzhou Mining Co., Ltd.
Tungsten    Hunan Chunchang Nonferrous Metals Co., Ltd.
Tungsten    Hydrometallurg, JSC
Tungsten    Japan New Metals Co., Ltd.
Tungsten    Jiangwu H.C. Starck Tungsten Products Co., Ltd.
Tungsten    Jiangxi Gan Bei Tungsten Co., Ltd.
Tungsten    Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.
Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.
Tungsten    Jiangxi Yaosheng Tungsten Co., Ltd.
Tungsten    Kennametal Fallon
Tungsten    Kennametal Huntsville
Tungsten    Malipo Haiyu Tungsten Co., Ltd.
Tungsten    Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC
Tungsten    Tejing (Vietnam) Tungsten Co., Ltd.
Tungsten    Unecha Refractory Metals Plant
Tungsten    Vietnam Youngsun Tungsten Industry Co., Ltd.
Tungsten    Wolfram Bergbau und Hutten AG
Tungsten    Xiamen Tungsten (H.C.) Co., Ltd.
Tungsten    Xiamen Tungsten Co., Ltd.
Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.

Countries of origin identified: Angola, Argentina, Armenia, Australia, Austria, Bolivia, Brazil, Burundi, Cambodia, Canada, Central African Republic, Chile, China, Colombia, Congo (Brazzaville),Czech Republic, Djibouti, DRC- Congo (Kinshasa), Ecuador, Egypt, Estonia, Ethiopia, Finland, France, Germany, Ghana, Guinea, Guyana, India, Indonesia, Ireland, Ivory Coast, Japan, Jersey, Kazakhstan, Kenya, Korea, Republic of, Kyrgyzstan, Laos, Madagascar, Malaysia, Mali, Mexico, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Niger, Nigeria, Papua New Guinea, Peru, Philippines, Poland, Portugal, Russian Federation, Rwanda, Saudi Arabia, Sierra Leone, Slovakia, South Africa, South Sudan, Spain, Suriname, Sweden, Switzerland, Taiwan, Tajikistan, Tanzania, Thailand, Turkey, Uganda, United Kingdom, United States, Uzbekistan, Viet Nam, Zambia, and Zimbabwe

Table 2 – The following Vendor-Reported Facilities were validated as smelters/refiners but are unaudited by the RMI (or other program) and country of origin information was unavailable. We continue to engage with our vendors to determine the source of Conflict Minerals processed at the following facilities and to engage in efforts to determine the mine or location of origin of the Conflict Minerals used with greater specificity.

 

Metal    Smelter/Facility
Gold    Chugai Mining
Gold    Daye Non-Ferrous Metals Mining Ltd.
Gold    Elemetal Refining, LLC
Gold    Great Wall Precious Metals Co., Ltd. of CBPM
Gold    Guangdong Jinding Gold Limited
Gold    Hunan Chenzhou Mining Co., Ltd.
Gold    Lingbao Jinyuan Tonghui Refinery Co., Ltd.
Gold    Luoyang Zijin Yinhui Gold Refinery Co., Ltd.
Gold    Navoi Mining and Metallurgical Combinat
Gold    Penglai Penggang Gold Industry Co., Ltd.
Gold    Sabin Metal Corp.
Gold    SAMWON METALS Corp.


Metal    Smelter/Facility
Gold    Shandong Tiancheng Biological Gold Industrial Co., Ltd.
Gold    Tongling Nonferrous Metals Group Co., Ltd.
Tin    Estanho de Rondonia S.A.
Tin    Gejiu Zili Mining And Metallurgy Co., Ltd.
Tungsten    Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.