Straits Trading Company Limited is established

The first record of tin being exported is from Klang in the state of Perak in 1613.^[1] During the 18th century, the Chinese arrived to work at the newly discovered rich tin fields at places like the Indonesian island of Banka. The Chinese merchants in Penang and Singapore then financed them to work at the tin-mining states along the west coast of the Malay Peninsula.^[2] The influx of Chinese miners gained momentum from 1848, when a new tin field in the Larut Valley of Perak was discovered; by 1870, more than 40,000 Chinese miners had been employed.^[3] The tin-mining industry became largely monopolised by the Chinese who smelted tin ore in small shaft furnaces, using charcoal as fuel and reducing agent.^[4]

At a time when Europe was undergoing the industrial revolution and tin became a sought-after commodity, the Malayan tin-mining industry became a major player in the world tin trade. Herman Muhlinghaus, a German entrepreneur, believed that efficiency of tin extraction could be increased by using coal in a larger furnace during the smelting process. He partnered James Sword, a Scottish businessman,^[5] and founded the Straits Trading Company Limited in Singapore on 8 November 1887, with an initial capital of $150,000.^[6]

Muhlinghaus and Sword erected a small reverberatory furnace at Teluk Anson in Perak, but encountered difficulties caused by the remote location of the smelter, and possibly the use of inadequate equipment.^[7] Undaunted, they erected smelting works on the island of Pulau Brani, Singapore, in 1890,^[8] which were remodelled, re-equipped and enlarged over time.^[9] In 1902, a second smelting plant at Butterworth in Province Wellesley was built to keep up with the booming business.^[10] By 1912, the company had become the largest tin-smelting company in the world, contributing to one-third of the world’s tin supply.^[11] The company’s smelting plants at  Pulau Brani and Penang were producing over 60,000 tons of refined tin annually, with the ore supply mainly from the Federated Malay States.^[12]

The company’s world-renowned tin, also known as “Straits Tin”, was more than 99.85-percent pure and shipped in ingots, each weighing 100 pounds (45 kg) and embossed with the name “The Straits Trading Co., Ltd.”. The United States was at the time the biggest buyer of the tin produced by the Straits Trading Company.^[13]

References
1. Chinese have played big part in Perak’s tin industry. (1939, March 2). The Straits Times, p. 6. Retrieved from NewspaperSG.
2. Tregonning, K. G. (1962). Straits tin: A brief account of the first seventy-five years of The Straits Trading Company, Limited, 1887–1962 (p. 3). Singapore: Straits Times Press. Call no.: RSING 338.76223453095951 TRE.
3. Tregonning, 1962, p. 3.
4. World’s biggest tin smelters. (1932, January 2). The Singapore Free Press and Mercantile Advertiser (1884–1942), p. 9. Retrieved from NewspaperSG.
5. Soh, T. K. (1999, October 18). Straits Trading: From tin to hotels and advertising. The Business Times, p. 4. Retrieved from NewspaperSG.
6. Straits Trading Company Ltd. (1987). 100 years of growth 1887–1987: The Straits Trading Company Limited (p. 4). Singapore: The Author. Call no.: RSING q338.76095957 STR.
7. Tregonning, 1962, p. 13.
8. The Business Times, 18 Oct 1999, p. 4.
9. Straits Trading Co. (1924, July 24). The Singapore Free Press and Mercantile Advertiser (1884–1942), p. 4. Retrieved from NewspaperSG.
10. The Singapore Free Press and Mercantile Advertiser (1884–1942), 2 Jan 1932, p. 9.
11. Straits Trading Company Ltd, 1987, p. 5.
12. Finest tin in the world. (1935, October 8). The Singapore Free Press and Mercantile Advertiser (1884–1942), p. 6. Retrieved from NewspaperSG.
13. The Singapore Free Press and Mercantile Advertiser (1884–1942), 2 Jan 1932, p. 9.