Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM SD

SPECIALIZED DISCLOSURE REPORT

 
 
 
 
STEEL PARTNERS HOLDINGS L.P.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
001-35493
13-3727655
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
 
 
590 Madison Avenue, 32nd Floor, New York, New York
10022
(Address of principal executive offices)
(Zip Code)

 
 
Douglas Woodworth, Chief Financial Officer, (212) 520-2300
(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:

þ Rule 13-p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2015.



Section 1 - Conflict Minerals Disclosure

Item 1.01 Conflict Minerals Disclosure and Report

Conflict Minerals Disclosure

Steel Partners Holdings L.P. (the "Company") has filed a Conflict Minerals Report for the calendar year ended December 31, 2015 as an exhibit to this specialized disclosure report (Exhibit 1.01). The Conflict Minerals Report is publicly available on the Company's website at www.steelpartners.com. The website (and information accessible through it) is not incorporated into this specialized disclosure report.

Item 1.02 Exhibit

As specified in Section 2 of Form SD, the Company is hereby filing its Conflict Minerals Report as Exhibit 1.01 to this Form SD.

Section 2 - Exhibits

Item 2.01 Exhibits

Exhibit 1.01 - Conflict Minerals Report



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.

 
 
 
 
 
STEEL PARTNERS HOLDINGS L.P.
 

By: Steel Partners Holdings GP Inc.
                       Its General Partner
 
 
 
 
Dated: May 26, 2016
By:
/s/ Douglas Woodworth
 
Name:
Douglas Woodworth
 
Title:
Chief Financial Officer


Exhibit


Exhibit 1.01
STEEL PARTNERS HOLDINGS L.P.
CONFLICT MINERALS REPORT
(For the Calendar Year Ended December 31, 2015)

Introduction

Steel Partners Holdings L.P. ("SPLP" or the "Company") is a global diversified holding company that engages, through subsidiaries and affiliates, in multiple businesses. In particular, its consolidated subsidiaries engage in such businesses as diversified industrial products, energy, banking and youth sports.

This Conflict Minerals Report is submitted pursuant to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the U.S. Securities and Exchange Commission's implementation rules and regulations related thereto (collectively, "Section 1502"). Defined terms used but not otherwise defined in this Conflict Minerals Report shall be as defined by Section 1502.

SPLP has carefully reviewed the activities of its consolidated subsidiaries, and concludes that this Conflict Minerals Report should address the activities of the Company's majority-owned subsidiary, Handy & Harman Ltd. ("HNH"). Based on its review, the Company does not believe the products manufactured or contracted to be manufactured by SPLP's remaining consolidated subsidiaries contain Conflict Minerals potentially necessary to the production or functionality of the Company's and its subsidiaries' products.

HNH, through its wholly-owned operating subsidiaries, is a diversified manufacturer of engineered niche industrial products. As of December 31, 2015, HNH's primary product portfolio consisted of the following products: brazing alloys and related products; steel tubing products; roofing and decking products, and associated fastening systems; glass and aramid substrate materials; and meat-room blade products and wood cutting blade products. With these products, HNH serves a diverse customer base, including the construction, electrical, electronics, transportation, utility, medical, oil and gas exploration, aerospace and defense, and food industries. The information contained in this Conflict Minerals Report includes the activities of all of HNH's majority-owned subsidiaries as of December 31, 2015.1 

Reasonable Country of Origin Inquiry

HNH conducted a reasonable country of origin inquiry ("RCOI") for the operations of its wholly-owned subsidiaries as of December 31, 2015. HNH supports the Conflict-Free Sourcing Initiative ("CFSI") and uses the CFSI's Conflict Minerals Reporting Template ("CMRT") as part of its RCOI process.

HNH reviewed its product portfolio and determined that some of its products contain or may contain Conflict Minerals potentially necessary to the production or functionality of the product in question. HNH's operating subsidiaries do not purchase any Conflict Minerals directly from any Covered Country. As such, HNH relies on its direct suppliers to provide information on the origin of any Conflict Minerals contained in any components and materials supplied to its operating subsidiaries, including sources of Conflict Minerals that are supplied to them from lower tier suppliers.

As part of the foregoing, HNH's products and suppliers were assessed in order to identify Conflict Minerals scope and risk. HNH in good faith determined that it was not practical to conduct a survey of all suppliers in its supply chain. Rather, HNH determined that a reasonable approach was to conduct a survey of direct suppliers if the components and materials supplied by those firms suggested they were likely to contain Conflict Minerals or had been confirmed to contain Conflict Minerals.


_____________________________

1 On January 22, 2015, HNH sold the operations of Arlon, LLC (which comprised substantially all of HNH's former Arlon Electronic Materials segment, which manufactured high performance materials for the printed circuit board industry and silicone rubber-based materials). Accordingly, this report does not include Arlon, LLC's activities.

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HNH identified 103 direct suppliers ("In-Scope Suppliers") for inclusion in HNH's 2015 RCOI. HNH surveyed the In-Scope Suppliers using the iPoint Conflict Materials Platform to send the CMRT. HNH reviewed submitted CMRTs against established criteria to determine if further follow-up was required. HNH sent a second request to those In-Scope Suppliers who did not complete the CMRT after the initial request or whose CMRT was determined to be incomplete. As necessary, HNH provided guidance to those In-Scope Suppliers who were unfamiliar with the CMRT. After completing its procedural escalations steps, HNH received completed responses from 92 of the In-Scope Suppliers surveyed (89% response rate).

From the 92 responses received, the In-Scope Suppliers identified 143 smelters or refiners. Of the 143 smelters or refiners, 118 were identified as certified conflict free smelters (as determined by the CFSI). An additional 17 were identified under the EICC-GeSI Conflict Free Smelter Assessment Program.

Due Diligence

Design of Due Diligence Framework

HNH has designed its conflict minerals due diligence process to be in accordance, in all material respects, with the five-step framework for risk-based due diligence in the mineral supply chain set forth in the Organization for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.


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Step
Actions Taken
Establish strong company management systems.
HNH has established its Conflict Minerals Policy, which is publicly available on HNH's website at www.handyharman.com/compliance.php.

HNH has established a corporate, cross-functional working team to manage its conflict mineral due diligence process. This team is responsible for HNH's Conflict Minerals Policy, its implementation and monitoring, and providing support and instruction on the conflict minerals due diligence measures that are required to be implemented for each of HNH's operating subsidiaries.

HNH has established a process and management system for tracking conflict minerals due diligence and previously engaged a third-party consulting firm with subject matter expertise to assist HNH with this process.

Each of HNH's operating subsidiaries has appointed an employee responsible for supporting HNH's conflict minerals due diligence program. These employees have been provided training by, and access to, the third-party consulting firm's subject matter expert to assist them with the implementation of HNH's conflict minerals program.

HNH's conflict minerals program is monitored by, and subject to regular reporting to, its senior management, as well as HNH's Audit Committee.

HNH encourages individuals or suppliers who wish to report possible violations of HNH's Conflict Minerals Policy and has established a grievance mechanism whereby individuals can contact HNH with any concerns related thereto. Please see "Other Items" below.
Identify and assess risks in the supply chain.
Please see "Due Diligence Measures Performed" below.

HNH has developed a process for all of its operating subsidiaries to provide support with evaluating risk in their individual supply chains. Risk is assessed based on suppliers' answers provided in the CMRT.

Where applicable and appropriate, HNH uses industry validation schemes to identify compliant smelters and refiners for use in its supply chain.

Design and implement a strategy to respond to identified risks.
HNH reports information gathered and the actual and potential risks identified from its conflict minerals due diligence to senior management.

HNH adheres to its Conflict Minerals Policy and communicates with its direct suppliers HNH's supply chain due diligence expectations with respect to Conflict Minerals.

HNH works with its direct suppliers to improve reporting on "upstream" supply chain due diligence.

Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain.
HNH does not typically have a direct relationship with mines, smelters or refiners of Conflict Minerals and thus does not perform or direct audits of these entities.

HNH does track the mines, smelters and refiners that have been identified by its direct suppliers as part of the CFSI and will take appropriate action as necessary based on HNH's Conflict Minerals Policy.

Report on supply chain due diligence.
Per its Conflict Minerals Policy, HNH will submit and comply with its obligations under Form SD, including, but not limited to, its filing of a Conflict Minerals Report as required.

HNH's Conflict Minerals Report is publicly available on its website at www.handyharman.com/compliance.php.


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Due Diligence Measures Performed

HNH identified 103 In-Scope Suppliers for inclusion in its 2015 RCOI. HNH surveyed the In-Scope Suppliers using the iPoint Conflict Materials Platform to send the CMRT. HNH reviewed submitted CMRTs against established criteria to determine if further follow-up was required. HNH sent a second request to those In-Scope Suppliers who did not complete the CMRT after the initial request or whose CMRT was determined to be incomplete. As necessary, HNH provided guidance to those In-Scope Suppliers who were unfamiliar with the CMRT. After completing its procedural escalations steps, HNH received completed responses from 92 of the In-Scope Suppliers surveyed (89% response rate). (See Appendix A).

From the 92 responses received, the In-Scope Suppliers identified 143 smelters or refiners. Of the 143 smelters or refiners, 118 were identified as certified conflict free smelters (as determined by the CFSI). An additional 17 were identified under the EICC-GeSI Conflict Free Smelter Assessment Program. (See Appendix B).

Independent Private Sector Audit

No independent private sector audit of HNH's Conflict Minerals Report or this Conflict Minerals Report was required or performed for the calendar year ended December 31, 2015.

Risk Mitigation and Future Due Diligence Measures

HNH will continue to monitor CFSI and other industry and regulatory initiatives related to Conflict Minerals and, on an as needed basis, engage third-party experts to assist HNH with its conflict minerals due diligence procedures. HNH is also participating in a yearly Manufacturers Alliance for Productivity and Innovation conference on Conflict Minerals.

HNH will continue to refine its standard operating procedures in an attempt to ensure that new suppliers and products are evaluated as "Conflict Free" prior to formal contract acceptance and new production introduction.

HNH will continue to review its contracts with its suppliers and will work to include, on a go-forward basis, a Conflict Minerals "flow down" clause in new or renewed supplier contracts.

HNH will continue to engage with its direct suppliers and direct them to training resources in an attempt to increase direct supplier response rates and improve the content of the direct supplier survey responses.

HNH has improved its suppliers' response rate from 74% in 2014 to 89% in 2015. HNH will strive to improve the supplier response rate again in 2016 and will track performance on a monthly basis.

HNH improved its percentage of certified conflict free smelters from 75% in 2014 to 83% in 2015. HNH will strive to improve again in 2016 by focusing on smelters not listed as CFSI validated.

HNH will continue to use an on-demand, on-line software solution to assist with the timely and accurate collection, management, aggregation and reporting of conflict minerals information.

HNH will continue to recommend that all suppliers use only smelters that have been validated per the CFSI.

HNH's policies include a standard process to follow-up with suppliers who fail to respond, or respond properly, to the survey. HNH will continue to follow-up per the defined process with suppliers who do not respond or respond in an incomplete manner.
SPLP will continue to carefully review the activities of its consolidated subsidiaries to determine whether additional reporting may be required in the future.



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Product Descriptions

HNH's diverse product offerings are manufactured in North America, Europe and Asia and marketed throughout the world. As of December 31, 2015, HNH and its subsidiaries employed over 2,100 people at 33 locations in eight countries. As of December 31, 2015, HNH's business units encompassed the following segments: Joining Materials, Tubing, Building Materials, Performance Materials and Kasco Blades and Route Repair Services ("Kasco").
Business Segment
General Product Description
Joining Materials
    Brazing alloys
    Brazing fluxes
    Brazing and soldering pastes
Tubing
    Stainless steel tubing
    Welded carbon steel tubing
Building Materials
    Roof and deck fasteners
    Roof insulation adhesives
    Roof drains, vents and flashing
    Roof pipe supports
    Roof repair tape
    Roof mounting systems
    Edge metal systems
    Engineered metal nailers
    Roof and decking productivity tools
Performance Materials
    Fiberglass fabrics
    Fiberglass reinforcing mesh
    Aramid fabrics
Kasco
    Meat grinder plates and knives
    Meat cutting blades
    Bakery and bread slicing blades
    Wood cutting blades and saws
    Cutlery
    Blade sharpeners
    Butcher supplies
    Meat seasonings

As noted in "Due Diligence Measures Performed" above, HNH identified 103 In-Scope Suppliers for inclusion in HNH's 2015 RCOI. HNH surveyed the In-Scope Suppliers using the iPoint Conflict Materials Platform to send the CMRT. HNH reviewed submitted CMRTs against established criteria to determine if further follow-up was required. HNH sent a second request to those In-Scope Suppliers who did not complete the CMRT after the initial request or whose CMRT was determined to be incomplete. As necessary, HNH provided guidance to those In-Scope Suppliers who were unfamiliar with the CMRT. After completing its procedural escalations steps, HNH received completed responses from 92 of the In-Scope Suppliers surveyed (89% response rate).

From the 92 responses received, the In-Scope Suppliers identified 143 smelters or refiners. Of the 143 smelters or refiners, 118 were identified as certified conflict free smelters (as determined by the CFSI). An additional 17 were identified under the EICC-GeSI Conflict Free Smelter Assessment Program. (See Appendix B). Because HNH's direct suppliers surveyed were unable to specifically identify all the smelters or refiners in their supply chain, HNH does not know: (i) the mine or location of origin of all of the necessary Conflict Minerals that are or may be contained in its products; (ii) the country of origin of all of the necessary Conflict Minerals that are or may be contained in its products; or (iii) all of the facilities used to process the necessary Conflict Minerals that are or may be contained in its products.

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Other Items

SPLP's Conflict Mineral Policy is publicly available at www.steelpartners.com. SPLP encourages individuals or suppliers who wish to report possible violations of its Conflict Minerals Policy to contact the Company via one of the following channels:

By logging concerns at steelpartners.ethicspoint.com
By calling, toll free:

In the United States, Canada or Puerto Rico: 1-877-254-1690
All other jurisdictions: visit steelpartners.ethicspoint.com for dialing instructions from your country.

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APPENDIX A
(In-Scope Suppliers Summary)

 
2014
2015
In-Scope Suppliers Identified
208
103
Responses Received
154
92
In-Scope Suppliers Response Percentage
74%
89%


APPENDIX B
(Smelter / Refiner Summary)

 
2014
2015
CFSI Certified
120
118
EICC-GeSI Listed
37
17
Unknown
4
8
CFSI Certified Percentage
75%
83%
Total
161
143


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