Deforestation was introduced to eliminate intermediate data structures used to connect separate parts of a functional program together. Fusion is a more sophisticated technique, based on a producer-consumer model, to eliminate intermediate data structures. It achieves better results. In this paper we extend this fusion algorithm by refining this model, and by adding new transformation rules. The extended fusion algorithm is able to deal with standard deforestation, but also with higher-order function removal and dictionary elimination. We have implemented this extended algorithm in the Clean 2.0 compiler.