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About Operations Products Financials Investor Relations News Releases Contact OPERATIONS DISSOLVING PULP SEGMENT FORTRESS ADVANCED BIOPRODUCTS ACQUISITION OF S2G BIOCHEMICALS On March 26, 2018 Fortress announced that it had closed the acquisition of S2G Biochemicals Inc., a Vancouver-based developer of C5 sugar conversion technologies and exclusive global licensee of a xylitol process technology developed jointly with Mondelēz (MDLZ: NASDAQ), one of the world’s largest snack food companies. S2G and Mondelēz have developed and extensively tested the technology at pilot-scale and Fortress intends to build a demonstration-scale plant at the Fortress Specialty Cellulose Mill (FSC) in Thurso Quebec, with the capacity to produce up to 2,000 tonnes/yr. of xylitol, a high-value low-calorie sweetener. Following successful completion of the demo plant, Fortress expects to construct an approximately $150M full-scale xylitol plant at the Thurso Mill site. FSC mixed hardwood and birch C5 sugars are a preferred and cost-effective source of xylose for the production of xylitol. The FSC Mill is expected to produce sufficient C5 sugars annually to provide the feedstock for up to an additional 20,000 tonnes per year of xylitol production. Mondelēz, one of the world’s largest users of xylitol, has worked with S2G since 2013 to develop the technology and will assist with certification and qualification of Fortress xylitol. BENEFITS OF FORTRESS SPECIALTY CELLULOSE S2G INTEGRATION The acquisition provides access to proprietary process technologies and expertise that will fast-track FSC’s plans to extract and add value from its C5 sugar stream as outlined in the Nov 29, 2016 hemicellulose /5th digester project announcement. FSC’s existing infrastructure and investment in the fifth digester project make it an ideal site for the demonstration plant. The pproject will increase dissolving pulp production at Thurso and reduce cost/tonne with the added benefit of diversion of C5 sugars to xylitol production will reduce the load on the mill’s recovery boiler. The full-scale plant expected to be one of the world’s lowest cost producers of xylitol. Xylitol will be targeted but clean C5 sugars can also open new strategic options as they can also be used as the building blocks for other high-value bioproducts and biochemical. Please refererence the March 19th Fortress Advanced Biopoducts presentation for further details on the S2G acquisition and demonstration plant. The presentation is available for download from the investor relations page. 2021 Fortress Global Enterprises Inc. All Rights Reserved Legal Subscribe to email list