SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SPECIALIZED DISCLOSURE REPORT
(Exact name of registrant as specified in its charter)
|(State or other jurisdiction of||Commission file number||(IRS Employer Identification|
|incorporation or organization)||No.)|
|c/o Stratasys, Inc.||1 Holzman Street, Science Park|
|7665 Commerce Way||P.O. Box 2496|
|Eden Prairie, Minnesota 55344||Rehovot, Israel 76124|
|(Address of principal executive offices)|
Vered Ben Jacob, Esq.,
Vice President Corporate Legal Affairs, +972-74-745-4029
(Name and telephone number, including area code, of the person to contact in connection with this 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 (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2016.
Section 1 Conflict Minerals Disclosure
Item 1.01 Conflict Minerals Disclosure and Report
Conflict Minerals Disclosure
In accordance with the requirements of Item 1.01(c) of Form SD, Stratasys Ltd. (Stratasys) has posted the Conflict Minerals Report filed as Exhibit 1.01 hereto to its publicly available Internet website at http://www.stratasys.com/corporate/investor-relations/financial-information/sec-filings.
Item 1.02 Exhibit
Stratasys has filed its Conflict Minerals Report as Exhibit 1.01 hereto as required by Item 1.01 of Form SD.
Section 2 Exhibits
Item 2.01 Exhibits
The following exhibit is filed as part of this report.
Exhibit 1.01 Conflict Minerals Report as required by Items 1.01 and 1.02 of this Form.
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.
|May 26, 2017||/s/ Lilach Payorski|
|By: Lilach Payorski|
|Chief Financial Officer|
Conflict Minerals Report of Stratasys Ltd.
This is the Conflict Minerals Report of Stratasys Ltd. for calendar year 2016 in accordance with Rule13p-1 of the Securities Exchange Act of 1934 (Rule 13p-1) and Form SD. The Rule 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 ("Dodd-Frank Act"). Conflict minerals are defined by the SEC as columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives, which are limited to tantalum, tin, and tungsten. Rule 13p-1 imposes certain reporting obligations on SEC registrants whose products contain Conflict Minerals that are necessary to the functionality or production of their products. If the SEC registrant has reason to believe that any of those Conflict Minerals may have originated in the Democratic Republic of the Congo (the DRC) or a country that shares an internationally recognized border with the Democratic Republic of the Congo (collectively, Covered Countries) or is unable to determine the country of origin of those Conflict Minerals, the SEC registrant is required to submit a Conflict Minerals Report to the SEC that includes a description of the measures it took to exercise due diligence on the Conflict Minerals source and chain of custody.
Stratasys Ltd. (Stratasys or we) is the product of the 2012 merger of two leading additive manufacturing companies, Stratasys, Inc. and Objet Ltd. Our ordinary shares are listed on the NASDAQ Global Select Market under the trading symbol SSYS. We have dual headquarters. One of our two principal places of business is located at 7665 Commerce Way, Eden Prairie, Minnesota. Our registered office and other principal place of business is located at 2 Holtzman Street, Science Park, P.O. Box 2496, Rehovot 76124, Israel.
We are a leading global provider of 3D printing and additive manufacturing, or AM, solutions for the creation of parts used in the processes of designing and manufacturing products and for the direct manufacture of end parts. Our solutions include products ranging from entry-level desktop 3D printers to systems for rapid prototyping, or RP, and large production systems for direct digital manufacturing, or DDM. We also develop, manufacture and sell materials for use with our systems and provide related services offerings. We believe that the range of 3D printing consumable materials that we offer, consisting of 15 fused deposition modeling (FDM) cartridge-based materials, 26 PolyJet cartridge-based materials, 5 smooth curvature printing (SCP) inkjet-based materials, 158 non-color digital materials, and over 1,500 color variations, as well as our 4 SolidScape non-toxic thermoplastic modeling materials, is the widest in the industry. Our services offerings include Stratasys Direct Manufacturing printed parts service as well as our professional services.
Our products and services are used in different applications by customers in a broad array of industries, including aerospace, automotive, consumer electronics, consumer goods, medical processes and medical devices, education, dental, jewelry and more. Our customers range from individuals and smaller businesses to large, global enterprises, and we include a number of Fortune 100 companies among our customers.
We offer a broad range of systems, consumables and services for 3D printing and additive manufacturing. Our wide range of solutions, based on our proprietary 3D printing technologies and materials, enhance the ability of designers, engineers and manufacturers to:
|●||visualize and communicate product ideas and
|●||verify the form, fit and function of
|●||manufacture tools, jigs, fixtures, casts and
injection molds used in the process of manufacturing end-products;
|●||manufacture customized and short-run
end-products more efficiently and with greater agility; and
|●||produce objects that could not otherwise be manufactured through subtractive manufacturing methodologies.|
Our product portfolio consists of five series of 3D printing systems and the consumables used by those systems. Our product series comprise the MakerBot desktop series, the Idea Series, the Design Series, the Production Series and the Dental Series. Collectively, this portfolio of products offers a broad range of performance options for users, depending on their desired application, as well as on the nature and size of the designs, prototypes or end-products they seek to produce. Our products are available at a variety of different price points and include entry-level desktop 3D printers, a range of systems for RP, and large production systems for DDM. We also offer a range of 3D printing materials consisting of 15 FDM cartridge-based materials, 26 PolyJet cartridge-based materials, 5 SCP, inkjet-based materials and 158 non-color digital materials, and over 1,500 color variations.
We offer a dedicated range of products for applications such as rapid prototyping (RP), tooling, as well as manufacturing parts. Our products include 3D printing systems, consumable materials, software and services.
Our 3D printing systems, which are based on our proprietary FDM and PolyJet technologies, are described below:
We offer a series of printing systems suitable for RP, from design validation, visualization and communication to form, fit and functional performance testing. These systems are targeted at work groups and offers a variety of products that provide customers with a broad range of choices of features such as printing capacity, production speed and price. The Objet systems offer high accuracy and print quality using a variety of PolyJet materials. The new F123 product line allows users to create parts in PLA, ABS plus, ASA and PC-ABS materials. These materials enable production of parts with the strength required for true form, fit and functional testing. The F123 is designed to enable ease of use and ease of maintenance and offers easy-to-use but functionality-rich user experience by using the GrabCAD Print software.
We also offer printing systems typically used for Additive Manufacturing production tooling and end parts applications - and high performance Prototyping applications.
Our FDM technology based systems produce durable, production-grade thermoplastic heated parts suitable for RP manufacturing, tooling and end-used parts use cases.
Our PolyJet technology based high-end printing systems offer the ability to print multiple materials including color printing in a single part build.
We also offer our Solidscape line of 3D printers, materials and software for Additive Manufacturing applications. This line of products combines patent-protected, SCP high-precision ink-jetting technology and high-precision milling of each layer, with our proprietary graphical front-end ModelWorks software. Objects created with these 3D printers are wax patterns and feature extremely high resolution and accuracy; are used primarily for casting in metal jewelry, dental and industrial parts.
Our MakerBot Replicator series represents our desktop 3D printers, compact, and professional-grade 3D printers. Our desktop and compact 3D printers are affordable, and designed for easy, desktop use and are typically used by individuals operating alone or within an enterprise. Our larger, professional 3D printer has a large build volume ideal for industrial prototypes, models and products.
We sell a broad range of 3D printing materials, consisting of 15 FDM cartridge-based materials, 26 PolyJet cartridge-based materials, five SCP inkjet-based materials and 158 non-color digital materials, and over 1,500 color variations for use in our 3D printers and production systems. The sale of these materials provides us with a recurring revenue stream from users of our 3D printers and production systems.
The materials we sell are described below:
The modeling and support filament used in the FDM-based 3D printers and production systems features a wide variety of production grade thermoplastic materials. We continue to develop filament modeling materials that meet our customers needs for increased speed, strength, accuracy, surface resolution, chemical and heat resistance, color, and mechanical properties. These materials are processed into our proprietary filament form, which is then utilized by our FDM systems. Our spool-based system has proven to be a significant advantage for our products, because it allows the user to quickly change material by simply mounting the lightweight spool and feeding the desired filament into the FDM devices that are office friendly. Currently, we have a variety of build materials in multiple colors commercially available for use with our FDM technology.
Each material has specific characteristics that make it appropriate for various applications. The ability to use different materials allows the user to match the material to the end use application, whether it is a pattern for tooling, a concept model, a functional prototype, a manufacturing tool, or a DDM end use part.
Our resin consumables, which consist of our PolyJet family of proprietary acrylic-based photopolymer materials, are designed for use with our PolyJet printing systems and enable users of those products to create highly accurate, finely detailed 3D models and parts for a wide range of prototype development and customized manufacturing applications. The wide variety of resins within the PolyJet family is characterized by transparent, colored, or opaque visual properties and flexible, rigid or other physical properties. Support materials that are used together with the model materials enable the 3D printing of models with a wide array of complex geometries. Our PolyJet materials are produced in-house and are specially designed for our printing systems.
We have invested significant research and development efforts in optimizing our PolyJet materials for use with inkjet technology. These efforts are reflected in the properties of these materials, which enable them to be packaged, stored, combined and readily cured upon printing. Our PolyJet materials are packaged in cartridges for safe handling and are suitable for use in office environments. The polymerized materials can also be machined, drilled, chrome-plated or painted in most cases.
SCP inkjet-based materials
Our Solidscape inkjet-based materials feature excellent lost wax casting qualities, including fast melt out, no ash or residue, and no thermal expansion. Currently, we have four modeling materials commercially available for use with our Solidscape technology. These include materials formulated specifically for particular industries, such as a thermalpolyester formula developed to help retail jewelers and manufacturers meet the demand for finished goods using less precious materials and a thermalpolyester material formulated to deliver high casting yields for dental applications.
Key Portfolio Additions & Innovations in 2016 and Early 2017
To further strengthen our leadership position and following our strategy to deepen the focus on additive manufacturing, tooling and rapid prototyping for specific vertical market, we announced a variety of innovations in 2016 across multiple applications for various key vertical markets, such as automotive, aerospace, consumer products and healthcare.
Stratasys J 750 fist true color 3D printer
In April 2016, we introduced what we believe to be an industry-first with our market-disruptive 3D printer, the J750. The new solution breaks restrictive technology barriers, enabling customers for the first time to mix-and-match full color gradients alongside a wide range of materials to achieve one-stop realism without post-processing. This, together with the system's superior versatility, makes the J750 a choice 3D printing solution for product designers, engineers and manufacturers, as well as service bureaus.
As the premier addition to the Objet Connex multi-color, multi-material series of 3D Printers, the Stratasys J 750 allows customers to choose from more than 360,000 different color shades plus multiple material properties - ranging from rigid to flexible and opaque to transparent. Prototypes can include a vast array of colors, materials and material properties in the same part, speeding production of realistic models, prototypes and parts for virtually any application need - as well as delivering incomparable 3D printing versatility to produce tooling, molds, jigs and fixtures and more.
The Stratasys F123 Series Smarter Prototyping for Workgroups
In February 2017, we introduced the F123 Series, a new comprehensive rapid prototyping solution that answers the specific needs of professional designers and engineers in the workgroup and office setting. For the first time, the F123 Series enables end-to-end rapid prototyping for every stage of the prototyping process: Rapid, economically-effective concept verification models in PLA material and fast-draft mode; advanced design validation prototypes using a 0.005 in. slice resolution and soluble support for unmatched precision, repeatability and aesthetics. Functional performance testing is enabled with a wide range of functional FDM materials including ABS, ASA, and PC-ABS.
Utilizing over 30 patented inventions selected from the entire Stratasys FDM range together with several new patents pending, the F123 Series offers wide-ranging engineering and interface usability enhancements to answer the needs of design workgroups: Engineering grade quality prototyping results - but easy enough for anyone to learn and operate. Professional levels of productivity - but quiet and unobtrusive enough to work in the office environment. The system incorporates GrabCAD Print software that enables printing straight from native CAD files, as well as the ability to manage jobs in real-time and from remote. The F123 Series comes in a range of 3 versatile platform sizes.
Easier to Manufacture Complex Hollow Composite Parts with New Sacrificial Tooling Solution
Sacrificial tooling, a process in which 3D printed molds are wrapped in composite material and then removed after part curing, enables manufacturers to rapidly and cost-effectively create complex, hollow composite parts. We are improving this process with a new sacrificial tooling solution, consisting of our new ST-130 material and new fill patterns. Together, the new material and fill patterns provide faster dissolution, rapid build speed, better autoclave performance and greatly improved tool quality.
Tough PC-ABS Material Now Available on More Stratasys 3D Printers
With its high durability and smooth matte finish, PC-ABS is a natural choice for challenging applications, such as power-tool prototyping and industrial equipment manufacturing. Owners of the F370, Fortus 380mc and 450mc 3D Printers will now have the ability to leverage PC-ABS, reducing time-to-market and high tooling costs for low-volume and custom production builds. 3D printing in real engineering thermoplastics results in stronger parts, more confident testing and prototypes that mimic the material properties of the final product.
Next Generation Production line enhancement for Fortus 900 mc
The Stratasys Fortus 900mc next Generation offers a streamlined workflow and easier job-monitoring with an internal camera and GrabCAD Print Software. Standard certifications are included, eliminating the effort and cost to qualify the 3D printer for the user's production floor.
New FDM Material Nylon 6
Stratasys Nylon 6 combines the strength of ULTEM 9085 with the toughness of Nylon 12. It affords a higher strength and stiffness as well as a better 3D printed appearance than Nylon 12. Nylon 6 is one of the most widely used thermoplastics applied in traditional manufacturing. For FDM 3D printing, Stratasys Nylon 6 is specially formulated to control the right balance between mature Nylon 6 properties and controlled shrinkage effects during the FDM 3D printing process.
Stratasys Manufacturing Aids Package
Our Manufacturing Aids Package offers assistance to manufacturers seeking to create custom manufacturing tools. The materials-and-services package includes 40 hours of design work from Stratasys Professional Services to make producing a first tool easy.
To create strong, lightweight tools, the kit includes canisters of thermoplastic build material and support material. Build material includes Nylon 6 - our newest engineering-grade material - as well as PC and ASA plastic. ASA is available in a choice of ten colors. The Manufacturing Aids Package includes our new SR-35 advanced soluble support material which offers faster dissolve time and extended bath life compared to our previous SR-30 soluble support material.
As an issuer that offers products that include Conflict Minerals necessary in our manufactured products, we are subject to Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 Section 1502 reporting requirements associated with Conflict Minerals and the Rule 13p-1.
1. Reasonable Country of Origin Inquiry
In accordance with our Conflict Minerals Policy, Stratasys has concluded in good faith that during calendar year 2016, we have manufactured and contracted to manufacture products containing all four Conflict Minerals and have determined that the use of these minerals is necessary to the functionality or production of these products.
We performed a reasonable country of origin inquiry (RCOI) simultaneously with the due diligence phase in which we engaged to determine whether the Conflict Minerals necessary to the functionality or production of our products were or were not DRC conflict free. This was done simultaneously due to the large number of applicable suppliers from which we source materials that we surveyed and the time frame in which we needed to complete both the RCOI and due diligence. We operate significantly downstream from the sources from the minerals used in our products components. As such, we rely upon the due diligence conducted by our own supply base to which we have limited amount of control. Our RCOI that we conduct therefore has certain limitations which limit the total degree of certainty that can be determined. Our RCOI employed several methods to assess whether the necessary Conflict Minerals in our products originated from the DRC or Covered Countries. These measures consisted primarily of the following actions:
|a)||Internal assessments of our products to determine which contain or may contain necessary Conflict Minerals.|
|b)||We identified a list of supplier we purchased from directly during calendar year 2016 (Tier 1 Suppliers), and segmented the list according to the type of material the supplier provides. Some of the suppliers' categories were excluded for the following reasons: they were not necessary to the functionality or production of the products, they didn't contain Conflict Minerals or the supplier provided a commercial off the shelf product.|
|c)||To reduce the risk of not receiving full information from our Tier 1 Suppliers, we also directly approach plastic, metal and electronic manufacturers, even though we have not purchased from them directly. We rely on our in-scope suppliers and manufacturers to provide us with information concerning the source and chain of custody of Conflict Minerals contained in the products and components they supply. The cumulative number of suppliers and manufacturers (in scope suppliers) we have approached is 821.|
|d)||Solicited survey responses using the standard template designed by the Conflict Free Sourcing Initiative (CFSI) (the Conflict Minerals Reporting Template (CMRT)). We engaged our supply chain to respond to the CMRT by referring suppliers to training materials that included an overview of the law and instructions on how to complete the CMRT.|
|e)||Assessment of responses received for information that would identify as inconsistent, incomplete, or inaccurate. In addition, we validate CMRTs received from suppliers to identify deviation from the CFSI requirements. Responses that failed any of the red flag review tests were identified for additional follow up.|
|e)||To non-responsive in scope suppliers, we sent periodic reminders to provide surveys or updated responses.|
Based on the RCOI conducted, Stratasys has reason to believe that a portion of the Conflict Minerals necessary to the functionality of its products originated in the DRC or a Covered Country and knows, or has reason to believe, that those necessary Conflict Minerals may not be from recycled or scrap sources. Based on this result, Stratasys conducted due diligence activities and details these efforts in this Conflict Minerals Report.
2. Due Diligence
Due diligence design
In accordance with Rule 13p-1 and Form SD, we undertook due diligence to determine whether the Conflict Minerals necessary to the functionality or production of our products were or were not DRC conflict free. We designed our due diligence measures to be in conformity, in all material respects, with the internationally recognized due diligence framework as set forth in the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD, 2013) (OECD Framework) and related supplements for Conflict Minerals.
The five steps defined in the OECD Due Diligence Guidance are: (1) establishment of strong internal company management systems; (2) identification and assessment of risks in the supply chain; (3) design and implementation of a strategy to respond to risks as they are identified; (4) carry out independent third-party audits of smelters and refiners due diligence practices; and (5) report annually on supply chain due diligence.
Due diligence measures undertaken
The due diligence measures we undertook consisted primarily of:
a. Established strong company management systems.
We reviewed and maintained the company management systems previously established through the following actions:
Reviewed our Conflict Minerals Policy in order to assess whether any updates were required. We strive to ensure that purchased metals originate only from smelters validated as being Conflict Mineral free. In addition, we expect our suppliers to comply with the terms of our Conflict Minerals Policy and encourage them to define, implement and communicate to their sub-suppliers their own policy, outlining their commitment to responsible sourcing of these materials, legal compliance and measures for implementation. Our Conflict Minerals Policy is available at http://files.shareholder.com/downloads/AMDA-FNA1K/4441022834x0x748757/72402B7D-BD98-4480-A580-59F519FDBC16/Stratasys-CM_Policy_FINAL_DISTRIBUTED_04-29-14.pdf.
Maintained the Conflict
Minerals Governance Charter that sets the Conflict Minerals annual work
plan including: steps for compliance, objectives, timeline, internal
management and cross functional team with identified roles and
responsibilities to support supply chain due diligence.
Held periodic meetings
of the cross functional team, for the purpose of sharing best practices
and monitoring our progress regarding the various steps required for
Engaged with in scope
suppliers and referred them to training materials online, including an
overview of relevant Conflict Minerals regulation and provided
instructions on how to respond to the due diligence survey (which was
based on the CMRT).
Included a Conflict
Minerals provision to our standard Terms and Conditions of Purchase to
require suppliers to comply with our Conflict Minerals Policy and
Communicated the due
diligence efforts to customers, suppliers and other relevant functions in
our organization, as applicable.
Maintained a grievance mechanism whereby concerns and violations of the Conflict Minerals Policy should be reported to Stratasys Chief Financial Officer and/or Vice President Legal affairs).
b. Identified and assessed risks in the supply chain
As part of our risk based approach, Stratasys identified the suppliers from which it made purchases over a specified amount during 2016. We assessed two primary risks in our supply chain: (1) the risk of not receiving timely and accurate information from the supplier; and (2) the risk of not being able to replace a supplier while trying to move towards the goal of being Conflict Minerals free.
In order to segment our suppliers into three risk levels (high, medium and low) we have identified and assessed Conflict Minerals-related risks based on suppliers and manufacturers characteristics, such as the geographical location of the supplier, whether or not the supplier is an SEC registrant, the suppliers reputation in the industry, our spending with a supplier during calendar year 2016 and the extent to we are dependent upon any particular manufacturer or supplier or the availability of alternative suppliers. This segmentation allowed us to invest our risk mitigation efforts according to the supplier level of risk.
We have identified, to the best of our efforts, the smelters and refiners in the supply chain by conducting a supply chain survey using the CMRT, requesting suppliers and manufactures to identify smelters and refiners and country of origin of the Conflict Minerals in products they supply to Stratasys. In addition, Stratasys compared smelters and refiners identified by the supply chain survey against the list of facilities that have received a "conflict free" designation from the Conflict Free Smelter Program (CFSP) or other independent third party audit program.
As part of the risk assessment phase, we identified that 46.7% of our in scope suppliers have policy in place that addresses the Conflict Minerals sourcing and 14.5% do not provide us with products containing Conflict Minerals.
c. Designed and implemented a strategy to respond to identified risks
The findings of the supply chain risk assessment were and continue to be reported to designated members of our senior management. As part of our risk management strategy we continue to work with the in scope suppliers while we advance our efforts to investigate our supply chain as follows:
Contacted in scope
suppliers whose responses were identified as incomplete, inconsistent or
Reviewed in scope
suppliers responses to track smelters and refiners in our supply chain
that supply us with Conflict Minerals and have not received a
conflict-free designation based on the CFSP or other independent third
party validation program.
Referred in scope
suppliers to online training materials that included an overview of the
law and instructions on how to complete the
As part of our continued risk management efforts, we send follow up letters to high risk non-responsive in scope suppliers, and to in scope suppliers who declared the existence of Conflict Minerals in their supply chain from the DRC or Covered Countries from non-certified smelters.
Supply chain due diligence is a dynamic process that requires on-going risk monitoring. In order to ensure effective management of risks, we review the risk identification process occasionally and update the risk mitigation strategy accordingly.
d. Reviewed independent third-party audit of smelter and refiner due diligence practices
Stratasys is a downstream consumer of necessary Conflict Minerals and is many steps removed from smelters and refiners who provide minerals and ores. Therefore, Stratasys does not perform audits of smelters and refiners within the supply chain. As a result, Stratasys due diligence efforts relied on reviewing cross-industry initiatives such as those led by the CFSI to conduct smelter and refiner due diligence.
e. Prepared this annual report on supply chain due diligence
Stratasys Conflict Mineral Policy states that we will comply with Section 1502 of the Dodd Frank Act which includes filing a Form SD and this Conflict Minerals report with the SEC and posting publicly on the Internet.
3. Results of Assessment
We conducted a supply chain survey of the 703 in scope suppliers that we identified may contribute necessary Conflict Minerals to our products compared to 806 in scope suppliers in calendar year 2015. In calendar year 2016 we included metal, electronics and plastic suppliers and manufacturers and took a risk based approach which focus on the majority of spend.
We received responses from in scope suppliers representing approximately a 54.5% response rate, containing the names and locations of smelters and refiners (see Annex 1) and country of origin (see Annex 2) that process Conflict Minerals, compared to approximately a 54% response rate attained for reporting year 2016.
Of the 54.5% of suppliers and manufacturers that responded:
4.7% of in scope
suppliers were classified as DRC conflict
3.1% of in scope
suppliers were classified as Not from DRC
26.6% of in scope
suppliers were classified as Free no Conflict
7.6% of in scope
suppliers were classified as Undetermined not from
58% of in scope suppliers were classified as Undetermined from DRC
The terms above have the following meaning as part of our due diligence efforts:
DRC conflict free
indicates that the in scope suppliers that reported that the Conflict
Minerals being used in the products provided to Stratasys originate from
Covered Countries, but the smelters are approved by the CFSI Conflict Free
Not from DRC indicates
that the in scope suppliers that reported that they were sourcing Conflict
Minerals but from countries other than the Covered
Free no 3TG indicates
that the in scope suppliers that reported that Conflict Minerals are not
contained in the product, or are not necessary for the functionality or
are not included in the production of the products provided to
Undetermined not from
DRC indicates that the in scope suppliers that reported the Conflict
Minerals being used in the products do not originate from Covered
Countries but they have not yet concluded their due diligence process so
this determination can potentially change. Due diligence for these in
scope suppliers will continue until the status changes or is confirmed.
Undetermined from DRC indicates that the in scope suppliers that reported the Conflict Minerals being used originate from Covered Countries and the smelters are approved by the CFSI program, but they have not yet concluded their due diligence process so this determination can potentially change. Due diligence for these in scope suppliers will continue until the status changes or is confirmed.
Despite in scope suppliers indicating that they source Conflict Minerals from the DRC and Covered Countries, these in scope suppliers were unable to accurately report which specific smelters or refiners were part of the supply chain of the components sold to Stratasys in 2016.
As a result of this lack of information, Stratasys is unable to determine the full list of facilities used to process those necessary Conflict Minerals or their country of origin and to conclude whether or not the Conflict Minerals used in its products may have directly or indirectly financed armed groups in Covered Countries. Stratasys efforts to determine the mine(s) or location of origin included the use of the due diligence measures described above.
Smelters and refiners verified as conflict free or in the audit process:
|Tin||79 of 92 (86%)|
|Tantalum||45 of 49 (91.2%)|
|Tungsten||46 of 53 (86.8%)|
|Gold||100 of 136 (73.5%)|
|Total||270 of 330 (81.8%)|
Status of identified smelters and refiners:
|Verified Conflict Free (CFSI Compliant)||257 of 330 (77.9%)|
|Participating in an audit process (CFSI Active)||13 of 330 (3.9%)|
|Not Participating||60 of 330 (18.2%)|
|Total (Conflict Free and under Audit process)||270 of 330 (81.8%)|
Additional Risk Factors
The statements above are based on the RCOI process and due diligence performed in good faith by Stratasys. These statements are based on the infrastructure and information available at the time. A number of factors could introduce errors or otherwise affect our conclusions.
These factors include, but are not limited to, gaps in product or product content information, gaps in supplier data, errors or omissions by or of suppliers, confusion over requirements of SEC final rules, gaps in supplier education and knowledge, lack of timeliness of data, public information not discovered during a reasonable search, errors in public data, language barriers and translation, supplier unfamiliarity with the protocol, conflict area sourced materials being declared secondary materials, companies going out of business in 2016 and smuggling of conflict area Conflict Minerals to countries beyond the Covered Countries.
We do not gather information from our suppliers on a continuous or real-time basis, but rather information is gathered from suppliers at the time that its provided in a CMRT.
We cannot be certain about our conclusions regarding the source and chain of custody of the necessary Conflict Minerals, as the information comes from direct and secondary suppliers and independent third party audit programs.
Continuous improvement efforts to mitigate risk
Stratasys continues to take, as applicable, the following steps to improve the due diligence process and mitigate the possibility that we are utilizing Conflict Minerals that benefit armed groups contributing to human rights violations:
Continue to conduct and
report annually on supply chain due diligence for the applicable Conflict
Minerals, as required by Rule 13p-1.
Work with in scope
suppliers that did not respond to Stratasys 2013, 2014, 2015 or 2016
surveys to help them understand the importance of this initiative to
Stratasys and to encourage their participation in
Attempt to validate in
scope supplier responses using information collected via independent,
conflict-free smelter validation programs such as the CFSP.
Send follow up letters to high risk non-responsive in scope suppliers and to in scope suppliers with Conflict Minerals from the Covered Countries from non-certified smelters.
This Report contains forward-looking statements within the meaning of U.S. federal securities laws. These forward-looking statements can generally be identified as such because the context of the statement will include words such as may, will, intends, plans, believes, anticipates, expects, estimates, predicts, potential, continue, or opportunity, the negative of these words or words of similar import. Examples of forward-looking statements include statements relating to our future plans, and any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may or may not prove to be accurate. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. As a result, these statements speak only as of the date they are made and we undertake no obligation to update or revise any forward-looking statement, except as required by U.S. federal securities laws.
Names And Locations of Smelters and Refiners
|Metal||Smelter or Refiner Name||Smelter or Refiner|
|Gold||Advanced Chemical Company||United States of America|
|Gold||JX Nippon Mining & Metals Co., Ltd.||Japan|
|Gold||Kazakhmys Smelting LLC||Kazakhstan|
|Gold||Kennecott Utah Copper LLC||United States of America|
|Gold||Kojima Chemicals Co., Ltd.||Japan|
|Gold||L'azurde Company For Jewelry||Saudi arabia|
|Gold||Lingbao Gold Co., Ltd.||China|
|Gold||Lingbao Jinyuan Tonghui Refinery Co., Ltd.||China|
|Gold||LS-NIKKO Copper Inc.||Korea (Republic of)|
|Gold||Luoyang Zijin Yinhui Gold Refinery Co., Ltd.||China|
|Gold||Materion||United States of America|
|Gold||Matsuda Sangyo Co., Ltd.||Japan|
|Gold||Metalor Technologies (Suzhou) Ltd.||China|
|Gold||Metalor Technologies (Hong Kong) Ltd.||China|
|Gold||Metalor Technologies (Singapore) Pte., Ltd.||Singapore|
|Gold||Metalor Technologies S.A.||Switzerland|
|Gold||Metalor USA Refining Corporation||United States of America|
|Gold||Metalúrgica Met-Mex Peñoles S.A. De C.V.||Mexico|
|Gold||Mitsubishi Materials Corporation||Japan|
|Gold||Mitsui Mining and Smelting Co., Ltd.||Japan|
|Gold||Moscow Special Alloys Processing Plant||Russian Federation|
|Gold||Nadir Metal Rafineri San. Ve Tic. A.Ş.||Turkey|
|Gold||Navoi Mining and Metallurgical Combinat||Uzbekistan|
|Gold||Nihon Material Co., Ltd.||Japan|
|Gold||Elemetal Refining, LLC||United States of America|
|Gold||Ohura Precious Metal Industry Co., Ltd.||Japan|
|Gold||OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant"
|Gold||Penglai Penggang Gold Industry Co., Ltd.||China|
|Gold||Prioksky Plant of Non-Ferrous Metals||Russian Federation|
|Gold||PT Aneka Tambang (Persero) Tbk||Indonesia|
|Gold||PX Précinox S.A.||Switzerland|
|Gold||Rand Refinery (Pty) Ltd.||South Africa|
|Gold||Royal Canadian Mint||Canada|
|Gold||Sabin Metal Corp.||United States of America|
|Gold||Samduck Precious Metals||Korea (Republic of)|
|Gold||Samwon Metals Corp.||Korea (Republic of)|
|Gold||Schone Edelmetaal B.V.||Netherlands|
|Gold||SEMPSA Joyería Platería S.A.||Spain|
|Gold||Shandong Tiancheng Biological Gold Industrial Co., Ltd.||China|
|Gold||Shandong Zhaojin Gold & Silver Refinery Co., Ltd.||China|
|Gold||Sichuan Tianze Precious Metals Co., Ltd.||China|
|Gold||So Accurate Group, Inc.||United States of America|
|Gold||SOE Shyolkovsky Factory of Secondary Precious Metals||Russian Federation|
|Gold||Solar Applied Materials Technology Corp.||Taiwan|
|Gold||Sumitomo Metal Mining Co., Ltd.||Japan|
|Gold||Tanaka Kikinzoku Kogyo K.K.||Japan|
|Gold||Great Wall Precious Metals Co., Ltd. of CBPM||China|
|Gold||The Refinery of Shandong Gold Mining Co., Ltd.||China|
|Gold||Tokuriki Honten Co., Ltd.||Japan|
|Gold||Tongling Nonferrous Metals Group Co., Ltd.||China|
|Gold||Torecom||Korea (Republic of)|
|Gold||Umicore Brasil Ltda.||Brazil|
|Gold||Umicore S.A. Business Unit Precious Metals Refining||Belgium|
|Gold||United Precious Metal Refining, Inc.||United States of America|
|Gold||Western Australian Mint trading as The Perth Mint||Australia|
|Gold||Yamamoto Precious Metal Co., Ltd.||Japan|
|Gold||Yokohama Metal Co., Ltd.||Japan|
|Gold||Zhongyuan Gold Smelter of Zhongjin Gold Corporation||China|
|Gold||Zijin Mining Group Co., Ltd. Gold Refinery||China|
|Gold||Morris and Watson||New Zealand|
|Gold||SAFINA A.S.||Czech Republic|
|Gold||Guangdong Jinding Gold Limited||China|
|Gold||Umicore Precious Metals Thailand||Thailand|
|Gold||Geib Refining Corporation||United States of America|
|Gold||MMTC-PAMP India Pvt., Ltd.||India|
|Gold||Republic Metals Corporation||United States of America|
|Gold||KGHM Polska Miedź Spólka Akcyjna||Poland|
|Gold||Fidelity Printers and Refiners Ltd.||Zimbabwe|
|Gold||Singway Technology Co., Ltd.||Taiwan|
|Gold||Al Etihad Gold Refinery DMCC||United States of America|
|Gold||Emirates Gold DMCC||United States of America|
|Gold||Kaloti Precious Metals||United States of America|
|Gold||Sudan Gold Refinery||Sudan|
|Gold||Remondis Argentia B.V.||Netherlands|
|Gold||Tony Goetz NV||Belgium|
|Gold||Korea Zinc Co., Ltd.||Korea (Republic of)|
|Gold||Abington Reldan Metals, LLC||United States of America|
|Gold||SAXONIA Edelmetalle GmbH||Germany|
|Gold||WIELAND Edelmetalle GmbH||Germany|
|Gold||Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH||Austria|
|Gold||AU Traders and Refiners||South Africa|
|Gold||AURA-II||United States of America|
|Gold||Gujarat Gold Centre||India|
|Gold||Universal Precious Metals Refining Zambia||Zambia|
|Gold||Modeltech Sdn Bhd||Malaysia|
|Tantalum||Changsha South Tantalum Niobium Co., Ltd.||China|
|Tantalum||Conghua Tantalum and Niobium Smeltry||China|
|Tantalum||Exotech Inc.||United States of America|
|Tantalum||F&X Electro-Materials Ltd.||China|
|Tantalum||Guangdong Zhiyuan New Material Co., Ltd.||China|
|Tantalum||Hi-Temp Specialty Metals, Inc.||United States of America|
|Tantalum||JiuJiang JinXin Nonferrous Metals Co., Ltd.||China|
|Tantalum||Jiujiang Tanbre Co., Ltd.||China|
|Tantalum||King-Tan Tantalum Industry Ltd.||China|
|Tantalum||LSM Brasil S.A.||Brazil|
|Tantalum||Metallurgical Products India Pvt., Ltd.||India|
|Tantalum||Mineração Taboca S.A.||Brazil|
|Tantalum||Mitsui Mining and Smelting Co., Ltd.||Japan|
|Tantalum||Molycorp Silmet A.S.||Estonia|
|Tantalum||Ningxia Orient Tantalum Industry Co., Ltd.||China|
|Tantalum||QuantumClean||United States of America|
|Tantalum||RFH Tantalum Smeltry Co., Ltd.||China|
|Tantalum||Solikamsk Magnesium Works OAO||Russian Federation|
|Tantalum||Taki Chemical Co., Ltd.||Japan|
|Tantalum||Telex Metals||United States of America|
|Tantalum||Ulba Metallurgical Plant JSC||Kazakhstan|
|Tantalum||Zhuzhou Cemented Carbide Group Co., Ltd.||China|
|Tantalum||Yichun Jin Yang Rare Metal Co., Ltd.||China|
|Tantalum||Hengyang King Xing Lifeng New Materials Co., Ltd.||China|
|Tantalum||D Block Metals, LLC||United States of America|
|Tantalum||FIR Metals & Resource Ltd.||China|
|Tantalum||Jiujiang Zhongao Tantalum & Niobium Co., Ltd.||China|
|Tantalum||XinXing HaoRong Electronic Material Co., Ltd.||China|
|Tantalum||Jiangxi Dinghai Tantalum & Niobium Co., Ltd.||China|
|Tantalum||KEMET Blue Metals||Mexico|
|Tantalum||Plansee SE Liezen||Austria|
|Tantalum||H.C. Starck Co., Ltd.||Thailand|
|Tantalum||H.C. Starck GmbH Goslar||Germany|
|Tantalum||H.C. Starck GmbH Laufenburg||Germany|
|Tantalum||H.C. Starck Hermsdorf GmbH||Germany|
|Tantalum||H.C. Starck Inc.||United States of America|
|Tantalum||H.C. Starck Ltd.||Japan|
|Tantalum||H.C. Starck Smelting GmbH & Co. KG||Germany|
|Tantalum||Plansee SE Reutte||Austria|
|Tantalum||Global Advanced Metals Boyertown||United States of America|
|Tantalum||Global Advanced Metals Aizu||Japan|
|Tantalum||KEMET Blue Powder||United States of America|
|Tantalum||Tranzact, Inc.||United States of America|
|Tantalum||E.S.R. Electronics||United States of America|
|Tantalum||Resind Indústria e Comércio Ltda.||Brazil|
|Tantalum||Jiangxi Tuohong New Raw Material||China|
|Tantalum||Power Resources Ltd.||Macedonia (the former
|Tin||Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.||China|
|Tin||Jiangxi Ketai Advanced Material Co., Ltd.||China|
|Tin||CNMC (Guangxi) PGMA Co., Ltd.||China|
|Tin||Alpha||United States of America|
|Tin||Cooperativa Metalurgica de Rondônia Ltda.||Brazil|
|Tin||CV Gita Pesona||Indonesia|
|Tin||PT Aries Kencana Sejahtera||Indonesia|
|Tin||CV Serumpun Sebalai||Indonesia|
|Tin||CV United Smelting||Indonesia|
|Tin||EM Vinto||Bolivia (Plurinational State of)|
|Tin||Estanho de Rondônia S.A.||Brazil|
|Tin||Gejiu Non-Ferrous Metal Processing Co., Ltd.||China|
|Tin||Gejiu Zili Mining And Metallurgy Co., Ltd.||China|
|Tin||Huichang Jinshunda Tin Co., Ltd.||China|
|Tin||Gejiu Kai Meng Industry and Trade LLC||China|
|Tin||China Tin Group Co., Ltd.||China|
|Tin||Malaysia Smelting Corporation (MSC)||Malaysia|
|Tin||Metallic Resources, Inc.||United States of America|
|Tin||Mineração Taboca S.A.||Brazil|
|Tin||Mitsubishi Materials Corporation||Japan|
|Tin||Nankang Nanshan Tin Manufactory Co., Ltd.||China|
|Tin||O.M. Manufacturing (Thailand) Co., Ltd.||Thailand|
|Tin||Operaciones Metalurgical S.A.||Bolivia (Plurinational State of)|
|Tin||PT Artha Cipta Langgeng||Indonesia|
|Tin||PT Babel Inti Perkasa||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 Karimun Mining||Indonesia|
|Tin||PT Mitra Stania Prima||Indonesia|
|Tin||PT Panca Mega Persada||Indonesia|
|Tin||PT Prima Timah Utama||Indonesia|
|Tin||PT Refined Bangka Tin||Indonesia|
|Tin||PT Sariwiguna Binasentosa||Indonesia|
|Tin||PT Stanindo Inti Perkasa||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||Rui Da Hung||Taiwan|
|Tin||Soft Metais Ltda.||Brazil|
|Tin||Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.||China|
|Tin||VQB Mineral and Trading Group JSC||Vietnam|
|Tin||White Solder Metalurgia e Mineração Ltda.||Brazil|
|Tin||Yunnan Chengfeng Non-ferrous Metals Co., Ltd.||China|
|Tin||Yunnan Tin Company Limited||China|
|Tin||CV Venus Inti Perkasa||Indonesia|
|Tin||Magnu's Minerais Metais e Ligas Ltda.||Brazil|
|Tin||PT Tirus Putra Mandiri||Indonesia|
|Tin||PT Wahana Perkit Jaya||Indonesia|
|Tin||Melt Metais e Ligas S.A.||Brazil|
|Tin||PT ATD Makmur Mandiri Jaya||Indonesia|
|Tin||Phoenix Metal Ltd.||Rwanda|
|Tin||O.M. Manufacturing Philippines, Inc.||Philippines|
|Tin||PT Inti Stania Prima||Indonesia|
|Tin||CV Ayi Jaya||Indonesia|
of the Cao Bang Minerals &
Metallurgy Joint Stock Company
|Tin||Nghe Tinh Non-Ferrous Metals Joint Stock Company||Vietnam|
|Tin||Tuyen Quang Non-Ferrous Metals Joint Stock Company||Vietnam|
|Tin||CV Dua Sekawan||Indonesia|
|Tin||CV Tiga Sekawan||Indonesia|
|Tin||PT Cipta Persada Mulia||Indonesia|
|Tin||An Vinh Joint Stock Mineral Processing Company||Vietnam|
|Tin||Resind Indústria e Comércio Ltda.||Brazil|
|Tin||PT O.M. Indonesia||Indonesia|
|Tin||PT Bangka Prima Tin||Indonesia|
|Tin||PT Sukses Inti Makmur||Indonesia|
|Tin||An Thai Minerals Co., Ltd.||Vietnam|
|Tin||PT Kijang Jaya Mandiri||Indonesia|
|Tin||HuiChang Hill Tin Industry Co., Ltd.||China|
|Tin||Gejiu Fengming Metallurgy Chemical Plant||China|
|Tin||Guanyang Guida Nonferrous Metal Smelting Plant||China|
|Tin||Modeltech Sdn Bhd||Malaysia|
|Tin||Gejiu Jinye Mineral Company||China|
|Tin||PT Lautan Harmonis Sejahtera||Indonesia|
|Tungsten||A.L.M.T. TUNGSTEN Corp.||Japan|
|Tungsten||Kennametal Huntsville||United States of America|
|Tungsten||Guangdong Xianglu Tungsten Co., Ltd.||China|
|Tungsten||Chongyi Zhangyuan Tungsten Co., Ltd.||China|
|Tungsten||Dayu Weiliang Tungsten Co., Ltd.||China|
|Tungsten||Fujian Jinxin Tungsten Co., Ltd.||China|
|Tungsten||Global Tungsten & Powders Corp.||United States of America|
|Tungsten||Hunan Chenzhou Mining Co., Ltd.||China|
|Tungsten||Hunan Chunchang Nonferrous Metals Co., Ltd.||China|
|Tungsten||Japan New Metals Co., Ltd.||Japan|
|Tungsten||Ganzhou Huaxing Tungsten Products Co., Ltd.||China|
|Tungsten||Kennametal Fallon||United States of America|
|Tungsten||Tejing (Vietnam) Tungsten Co., Ltd.||Vietnam|
|Tungsten||Vietnam Youngsun Tungsten Industry Co., Ltd.||Vietnam|
|Tungsten||Wolfram Bergbau und Hütten AG||Austria|
|Tungsten||Xiamen Tungsten Co., Ltd.||China|
|Tungsten||Xinhai Rendan Shaoguan Tungsten Co., Ltd.||China|
|Tungsten||Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd.||China|
|Tungsten||Ganzhou Jiangwu Ferrotungsten Co., Ltd.||China|
|Tungsten||Jiangxi Yaosheng Tungsten Co., Ltd.||China|
|Tungsten||Jiangxi Xinsheng Tungsten Industry Co., Ltd.||China|
|Tungsten||Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.||China|
|Tungsten||Malipo Haiyu Tungsten Co., Ltd.||China|
|Tungsten||Xiamen Tungsten (H.C.) Co., Ltd.||China|
|Tungsten||Jiangxi Gan Bei Tungsten Co., Ltd.||China|
|Tungsten||Ganzhou Seadragon W & Mo Co., Ltd.||China|
|Tungsten||Asia Tungsten Products Vietnam Ltd.||Vietnam|
|Tungsten||Chenzhou Diamond Tungsten Products Co., Ltd.||China|
|Tungsten||Dayu Jincheng Tungsten Industry Co., Ltd.||China|
|Tungsten||Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd.||China|
|Tungsten||Ganzhou Yatai Tungsten Co., Ltd.||China|
|Tungsten||H.C. Starck GmbH||Germany|
|Tungsten||H.C. Starck Smelting GmbH & Co.KG||Germany|
|Tungsten||Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC||Vietnam|
|Tungsten||Jiangwu H.C. Starck Tungsten Products Co., Ltd.||China|
|Tungsten||Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji||China|
|Tungsten||Niagara Refining LLC||United States of America|
|Tungsten||Jiangxi Dayu Longxintai Tungsten Co., Ltd.||China|
|Tungsten||Hydrometallurg, JSC||Russian Federation|
|Tungsten||Unecha Refractory metals plant||Russian Federation|
|Tungsten||South-East Nonferrous Metal Company Limited of
|Tungsten||Philippine Chuangxin Industrial Co., Inc.||Philippines|
|Tungsten||Xinfeng Huarui Tungsten & Molybdenum New Material
|Tungsten||ACL Metais Eireli||Brazil|
|Tungsten||Woltech Korea Co., Ltd.||Korea (Republic of)|
|Tungsten||Moliren Ltd||Russian Federation|
Country of Origin
|Austria||Brazil||Bolivia (Plurinational State of)||Brazil|
|China||India||Japan||Korea (republic of)|
|Germany||Macedonia (the former
Yugoslav Republic of)
|Philippines||United States of America|
|Japan||United States of America||Taiwan|
|Korea (Republic of)||United States of America|
|Taiwan, Province of
|United Arab Emirates|
|United States of America|