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class="submenu__close-button btn2" title="Close Submenu" data-js-button="submenu-close-button"> <span class="icon-angle-left"></span> </button> <div class="submenu__label"><span>Healthcare</span></div> </div> <div class="submenu__lower"> <div class="submenu__col submenu--level-2"> <ul> <li><a class="link link--dark" href="/en/invest/industries/healthcare-market-germany/medical-biotechnology" title="Medical Biotechnology" >Medical Biotechnology</a></li> <li><a class="link link--dark" href="/en/invest/industries/healthcare-market-germany/medical-technology" title="Medical Technology" >Medical Technology</a></li> <li><a class="link link--dark" href="/en/invest/industries/healthcare-market-germany/digital-health" title="Digital Health" >Digital Health</a></li> <li><a class="link link--dark" href="/en/invest/industries/healthcare-market-germany/pharmaceutical-industry" title="Pharmaceutical Industry" >Pharmaceutical Industry</a></li> <li><a class="link link--dark" href="/en/invest/industries/healthcare-market-germany/health-made-in-germany" title="HEALTH MADE IN GERMANY" >HEALTH MADE IN GERMANY</a></li> <li><a class="link link--dark link--page-preview" href="/en/invest/industries/healthcare-market-germany" title="Healthcare" >Overview "Healthcare"</a></li> </ul> </div> </div> </div> </li> <li> <button type="button" class="button button--submenu-trigger icon-angle-right-after" title="Open Submenu" aria-label="Submenu" aria-expanded="false" aria-haspopup="true" data-js-button="submenu-button" data-closed-title="Open Submenu" data-opened-title="Close Submenu"> <span class="button__label">Energy</span> </button> <div class="submenu" aria-hidden="true" data-js-menu="sub-menu"> <div class="submenu__upper"> <button type="button" class="submenu__close-button btn2" title="Close Submenu" data-js-button="submenu-close-button"> <span class="icon-angle-left"></span> </button> <div class="submenu__label"><span>Energy</span></div> </div> <div class="submenu__lower"> <div class="submenu__col submenu--level-2"> <ul> <li><a class="link link--dark" href="/en/invest/industries/energy/bioenergy" title="Bioenergy" >Bioenergy</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/energy-efficiency-in-buildings" title="Energy Efficiency in Buildings" >Energy Efficiency in Buildings</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/energy-efficiency-in-industry" title="Energy Efficiency in Industry" >Energy Efficiency in Industry</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/energy-infrastructure-65884" title="Energy Infrastructure" >Energy Infrastructure</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/energy-storage" title="Energy Storage" >Energy Storage</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/green-hydrogen" title="Green Hydrogen" >Green Hydrogen</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/photovoltaic" title="Photovoltaic" >Photovoltaic</a></li> <li><a class="link link--dark" href="/en/invest/industries/energy/wind-energy" title="Wind Energy" >Wind Energy</a></li> <li><a class="link link--dark link--page-preview" href="/en/invest/industries/energy" title="Energy" >Overview "Energy"</a></li> </ul> </div> </div> </div> </li> <li> <button type="button" class="button button--submenu-trigger icon-angle-right-after" title="Open Submenu" aria-label="Submenu" aria-expanded="false" aria-haspopup="true" data-js-button="submenu-button" data-closed-title="Open Submenu" data-opened-title="Close Submenu"> <span class="button__label">Environmental Technologies</span> </button> <div class="submenu" aria-hidden="true" data-js-menu="sub-menu"> <div class="submenu__upper"> <button type="button" class="submenu__close-button btn2" title="Close Submenu" data-js-button="submenu-close-button"> <span class="icon-angle-left"></span> </button> <div class="submenu__label"><span>Environmental Technologies</span></div> </div> <div class="submenu__lower"> <div class="submenu__col submenu--level-2"> <ul> <li><a class="link link--dark" href="/en/invest/industries/environmental-technologies/building-industry" title="Building Industry" >Building Industry</a></li> <li><a class="link link--dark" href="/en/invest/industries/environmental-technologies/climate-change-the-environment-68370" title="Climate Change & The Environment" >Climate Change & The Environment</a></li> <li><a class="link link--dark" href="/en/invest/industries/environmental-technologies/recycling-waste-management-68380" title="Germany's Circular Economy" >Germany's Circular Economy</a></li> <li><a class="link link--dark" href="/en/invest/industries/environmental-technologies/water-technologies-68394" title="Water Technologies" >Water Technologies</a></li> <li><a class="link link--dark link--page-preview" href="/en/invest/industries/environmental-technologies" title="Environmental Technologies" >Overview "Environmental Technologies"</a></li> </ul> </div> </div> </div> </li> <li> <button type="button" class="button button--submenu-trigger icon-angle-right-after" title="Open Submenu" aria-label="Submenu" aria-expanded="false" aria-haspopup="true" data-js-button="submenu-button" data-closed-title="Open Submenu" data-opened-title="Close Submenu"> <span class="button__label">Consumer Industries</span> </button> <div class="submenu" aria-hidden="true" data-js-menu="sub-menu"> <div class="submenu__upper"> <button type="button" class="submenu__close-button btn2" title="Close Submenu" data-js-button="submenu-close-button"> <span class="icon-angle-left"></span> </button> <div class="submenu__label"><span>Consumer Industries</span></div> </div> <div class="submenu__lower"> <div class="submenu__col submenu--level-2"> <ul> <li><a class="link link--dark" href="/en/invest/industries/consumer-industries/consumer-markets-retail" title="Consumer Markets & Retail Landscape" >Consumer Markets & Retail Landscape</a></li> <li><a class="link link--dark" href="/en/invest/industries/consumer-industries/food-beverages" title="Food & Beverage Industry" >Food & Beverage Industry</a></li> <li><a class="link link--dark" href="/en/invest/industries/consumer-industries/franchising-65658" title="Franchising" >Franchising</a></li> <li><a class="link link--dark" href="/en/invest/industries/consumer-industries/e-commerce" title="E-Commerce" >E-Commerce</a></li> <li><a class="link link--dark link--page-preview" href="/en/invest/industries/consumer-industries" title="Consumer Industries" >Overview "Consumer Industries"</a></li> </ul> </div> </div> </div> </li> <li> <button type="button" class="button button--submenu-trigger icon-angle-right-after" title="Open Submenu" aria-label="Submenu" aria-expanded="false" aria-haspopup="true" data-js-button="submenu-button" data-closed-title="Open Submenu" data-opened-title="Close Submenu"> <span class="button__label">Services</span> </button> <div class="submenu" aria-hidden="true" data-js-menu="sub-menu"> <div class="submenu__upper"> <button type="button" class="submenu__close-button btn2" title="Close Submenu" data-js-button="submenu-close-button"> <span class="icon-angle-left"></span> </button> <div class="submenu__label"><span>Services</span></div> </div> <div class="submenu__lower"> <div class="submenu__col submenu--level-2"> <ul> <li><a class="link link--dark" href="/en/invest/industries/services/banking-location-germany-75164" title="Banking Location Germany" >Banking Location Germany</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/bpo-shared-services" title="BPO/Shared Services Industry" >BPO/Shared Services Industry</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/contact-centers" title="Contact Center Industry" >Contact Center Industry</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/factoring-leasing-75212" title="Factoring & Leasing" >Factoring & Leasing</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/fintech-65682" title="FinTech" >FinTech</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/fund-and-asset-management-254634" title="Fund and Asset Management" >Fund and Asset Management</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/insurance-location-germany-75176" title="Insurance Location Germany" >Insurance Location Germany</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/logistics" title="Logistics" >Logistics</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/private-equity-and-venture-capital-75214" title="Private Equity and Venture Capital" >Private Equity and Venture Capital</a></li> <li><a class="link link--dark" href="/en/invest/industries/services/financial-services" title="Financial Services" >Financial Services</a></li> <li><a class="link link--dark link--page-preview" href="/en/invest/industries/services" title="Services" >Overview "Services"</a></li> </ul> </div> </div> </div> </li> <li> <button type="button" class="button button--submenu-trigger icon-angle-right-after" title="Open Submenu" aria-label="Submenu" aria-expanded="false" aria-haspopup="true" data-js-button="submenu-button" data-closed-title="Open Submenu" data-opened-title="Close Submenu"> <span class="button__label">Industrial Production</span> </button> <div class="submenu" aria-hidden="true" data-js-menu="sub-menu"> <div class="submenu__upper"> <button type="button" class="submenu__close-button btn2" title="Close Submenu" data-js-button="submenu-close-button"> <span class="icon-angle-left"></span> </button> <div class="submenu__label"><span>Industrial Production</span></div> </div> <div class="submenu__lower"> <div class="submenu__col submenu--level-2"> <ul> <li><a class="link 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Key Figures"" > <span>Productivity in Germany - Key Figures</span> </a> </li> </ul> </div> <div id="main" > <article class="article"> <header class="article-header"> <div class="img-wrapper " data-role="image-wrapper" > <picture class="default-picture"> <source srcset="/resource/image/780672/16x9/480/270/363290459977f6194d5e261246f3e83d/AF39D5979315CDE4F9754D6C342A32BF/rf-getty-492693613-rz-1-.webp 480w, /resource/image/780672/16x9/639/360/363290459977f6194d5e261246f3e83d/C9A36F06572F77E85D5FCF5098E11E8B/rf-getty-492693613-rz-1-.webp 639w, /resource/image/780672/16x9/1024/576/363290459977f6194d5e261246f3e83d/E3C0B2C25832DB33571872C7145647AA/rf-getty-492693613-rz-1-.webp 1024w, /resource/image/780672/16x9/791/445/363290459977f6194d5e261246f3e83d/6C513F6919EF565CB4D61B112E9C0D54/rf-getty-492693613-rz-1-.webp 791w" sizes="((min-width: 0px) and (max-width: 480px)) 480px, ((min-width: 481px) and (max-width: 639px)) 639px, ((min-width: 640px) and (max-width: 1024px)) 1024px, (min-width: 1025px) 791px"/> <source srcset="/resource/image/780672/16x9/480/270/363290459977f6194d5e261246f3e83d/23C2F6AD1AC5153E2CCC1F0F514CD1C3/rf-getty-492693613-rz-1-.jpg 480w, /resource/image/780672/16x9/639/360/363290459977f6194d5e261246f3e83d/8C101C7E71ECF2DAF7FCBA535508FFA1/rf-getty-492693613-rz-1-.jpg 639w, /resource/image/780672/16x9/1024/576/363290459977f6194d5e261246f3e83d/72F82ED88E984DC8E23B7AA596DD2666/rf-getty-492693613-rz-1-.jpg 1024w, /resource/image/780672/16x9/791/445/363290459977f6194d5e261246f3e83d/B6B050F6E194C342B925A4233876A9A7/rf-getty-492693613-rz-1-.jpg 791w" sizes="((min-width: 0px) and (max-width: 480px)) 480px, ((min-width: 481px) and (max-width: 639px)) 639px, ((min-width: 640px) and (max-width: 1024px)) 1024px, (min-width: 1025px) 791px"/> <img src="/resource/image/780672/16x9/1024/576/363290459977f6194d5e261246f3e83d/72F82ED88E984DC8E23B7AA596DD2666/rf-getty-492693613-rz-1-.jpg" alt="RF_Getty_492693613_RZ[1]" title="Mid adult male technician maintaining cables in engineering plant | © GettyImages/Sigrid Gombert" loading="lazy" /> </picture> <a data-lightbox="" href="/resource/image/780672/16x9/1024/576/363290459977f6194d5e261246f3e83d/72F82ED88E984DC8E23B7AA596DD2666/rf-getty-492693613-rz-1-.jpg" data-type="image" title="Enlarge image"></a> <span class="imgCopyright"> <span class="i"></span> <span class="info" > Mid adult male technician maintaining cables in engineering plant | © GettyImages/Sigrid Gombert </span> </span> </div><p class="article-taxonomies" > <span > Investment Environment </span> </p><div class="headlineBlock"> <h1 > Productivity in Germany - Key Data </h1> </div><div class="kurztext" > <p>An excellent labor force and efficient production processes have led to an increase in productivity - higher than that in labor costs - over the past decade.</p> </div> </header> <div class="richtext"> <p>Germany's reputation as a production powerhouse precedes it. A highly skilled workforce, stable labor costs and advanced industrial processes make it the preferred European site for foreign direct investments.</p> <div class="anchor-links"> <strong>Content of this page</strong> <ul > <li > <a data-show="div-replace-770052" data-track-name="wt770052" id="770052" class="link active" title="Open "Competitive Production"" href="#770052" > <span>Competitive Production</span> <script type="text/plain" data-usercentrics="Mapp"> var wt770052 = { "contentId": "gtai-en.invest.business-location-germany.business-climate.competitive-production-770052", "linkTrackParams": "view", "contentGroup": { 1 : "gtai-en", 2 : "invest", 3 : "business-location-germany", 4 : "business-climate", 5 : "competitive-production-770052" } }; wt770052.formAttribute = "data-wt"; wt770052.customSessionParameter = { 1 : "false" }; wt770052.customEcommerceParameter = { 4 : "Volltext", 5 : "Frei", 7 : "INVESTITIONSKLIMA", 8 : "INVESTITIONSKLIMA" }; wt770052.customParameter = { 2 : "INVESTITIONSKLIMA", 4 : "Website", 5 : "Competitive Production", 6 : "2021-12-01", 8 : "INVESTITIONSKLIMA", 10 : "INVESTITIONSKLIMA", 12 : "INVESTITIONSKLIMA", 14 : "coremedia:///cap/content/770052" }; </script> </a> </li> <li > <a data-show="div-replace-65348" data-track-name="wt65348" id="65348" class="link " title="Open "Labor Market"" href="#65348" > <span>Labor Market</span> <script type="text/plain" data-usercentrics="Mapp"> var wt65348 = { "contentId": "gtai-en.invest.business-location-germany.business-climate.dual-education-system-65348", "linkTrackParams": "view", "contentGroup": { 1 : "gtai-en", 2 : "invest", 3 : "business-location-germany", 4 : "business-climate", 5 : "dual-education-system-65348" } }; wt65348.formAttribute = "data-wt"; wt65348.customSessionParameter = { 1 : "false" }; wt65348.customEcommerceParameter = { 4 : "Volltext", 5 : "Frei", 7 : "INVESTITIONSKLIMA;ARBEITSMARKT, LOHN- UND LOHNNEBENKOSTEN", 8 : "INVESTITIONSKLIMA;ARBEITSMARKT, LOHN- UND LOHNNEBENKOSTEN" }; wt65348.customParameter = { 2 : "INVESTITIONSKLIMA;ARBEITSMARKT, LOHN- UND LOHNNEBENKOSTEN", 4 : "Website", 5 : "Labor Market", 6 : "2021-12-01", 8 : "INVESTITIONSKLIMA;ARBEITSMARKT, LOHN- UND LOHNNEBENKOSTEN", 10 : "INVESTITIONSKLIMA;ARBEITSMARKT, LOHN- UND LOHNNEBENKOSTEN", 12 : "INVESTITIONSKLIMA;ARBEITSMARKT, LOHN- UND LOHNNEBENKOSTEN", 14 : "coremedia:///cap/content/65348" }; </script> </a> </li> </ul> </div> <div class="replacement-containers"> <div id="" class="teaserbox active" data-role="basic-teaser" data-anchor="div-replace-770052"> <h2 >Competitive Production</h2> <div class="teaserbox__content" data-role="basic-teaser-content" > <div class="kurztext" > <p>Germany is an attractive production location thanks to high productivity, stable labor costs and advanced manufacturing processes.</p> </div><div class="anchor-links"><ul><li><a class="link" href="#toc-anchor--1">High Productivity</a></li><li><a class="link" href="#toc-anchor--2">Stable Labor Costs</a></li><li><a class="link" href="#toc-anchor--3">Highly Automated Manufacturing</a></li></ul></div> <h3 id="toc-anchor--1">High Productivity</h3><p>In terms of nominal unit labor costs, Germany has gained in productivity over the past decade. While some European countries, especially in Eastern Europe, are showing a substantial increase in nominal unit labor costs of more than three, sometimes more than five percent, Germany has registered a moderate growth of two percent. As a result, Germany has become more competitive – particularly in manufacturing.</p><h3 id="toc-anchor--2">Stable Labor Costs</h3><p>The labor cost difference between Germany and its neighbors in Eastern Europe has been reduced significantly. Since 2020, labor costs in manufacturing have been rising in the EU-27 member states at an annual rate of 2.7 percent. While labor costs in some EU countries – and particularly those in Eastern Europe – have been growing at an annual rate of more than five percent, labor costs in Germany have been increasing at a rate of just 2.0 percent.</p><h3 id="toc-anchor--3">Highly Automated Manufacturing</h3><p>Production in German manufacturing is highly automated. According to the International Federation of Robotics, 397 industrial robots per 10,000 employees have been in operation in 2021. In absolute terms, 25,915 industrial robots were deployed in that year alone. Today, Germany is the European leader in industrial automation. Clients in the automotive and electronics industries are the primary beneficiaries of industrial robot installation.</p> <div class="add-to-bookmarks"> <a href="" class="add-to-bookmarks__link" title="">Add to dossier</a> <button class="button" data-tooltip="Log in and add this element to a dossier. Manage your dossiers and export them as PDF in your personal area. Find and add elements to your dossiers anywhere on the website."> <span class="icon-info-circle"></span> </button> </div> </div> </div><div id="" class="teaserbox " data-role="basic-teaser" data-anchor="div-replace-65348"> <h2 >Labor Market</h2> <div class="teaserbox__content" data-role="basic-teaser-content" > <div class="kurztext" > <p>Germany provides ready access to a competitive, highly skilled and motivated workforce.</p> </div><div class="anchor-links"><ul><li><a class="link" href="#toc-anchor--4">Highly Skilled Workforce</a></li><li><a class="link" href="#toc-anchor--5">Dual Education System</a></li><li><a class="link" href="#toc-anchor--6">Motivated and Dependable Employees</a></li></ul></div> <h3 class="MsoNoSpacing" id="toc-anchor--4">Highly Skilled Workforce</h3><p class="MsoNoSpacing">Germany’s world-class education system ensures that the highest standards are always met. The German workforce comprises over 45 million people – making it the largest pool of skilled labor in the EU. Additionally, companies in Germany benefit from a great number of well trained employees: More than 80 percent of the German workforce has received a formal vocational training, is in possession of a trade or technical school certificate or an academic degree.</p><p class="MsoNoSpacing">Germany’s globally renowned dual system of vocational training consists of about 1.2 million apprentices, around 400,000 training companies and more than 8,000 vocational schools. In addition, about 2.9 million students are enrolled at one of Germany’s more than 400 universities. A majority has opted for courses with a technical focus. Germany’s share of university students in the natural sciences, in mathematics, statistics and computer sciences, and in engineering is the highest in the EU, with 37.7 percent of all students in Germany (2021). According to OECD statistics, Germany has the highest number of graduates with a doctoral degree in the natural sciences and in engineering.</p><h3 class="MsoNoSpacing" id="toc-anchor--5">Dual Education System</h3><p class="MsoNoSpacing">In order to secure the economy’s demand for highly qualified personnel, Germany traditionally relies on a dual system of vocational education and training - combining the benefits of classroom-based and on-the-job training over a period of two to three years. Every fifth German company participates in the dual vocational training system, which turns their best apprentices into specialists that successfully comply with industry’s needs.</p><p class="MsoNoSpacing">The apprentices also benefit from the system. In 2021, about 74 percent of all apprentices received an employment contract after completing their vocational training at the company. More than 1.2 million young people are currently enrolled in a vocational training program. Germany has Europe’s lowest youth unemployment rate with only 5.7 percent and enjoys an excellent reputation resulting from the dual system of vocational education and training.</p><p class="MsoNoSpacing"> </p><span class="img-wrapper img-wrapper--content svg "> <div class=""> <img src="/resource/blob/787352/1b47c75c0697ee8a32326851530f8fb1/dual-education-system-data.svg" alt="Dual Education System" title="Germany’s Dual Vocational Education and Training (VET) System" class="cm-media cm-media--loading svg"> <a data-lightbox="" href="/resource/blob/787352/1b47c75c0697ee8a32326851530f8fb1/dual-education-system-data.svg" data-type="image" title="Enlarge image"></a> </div> <span class="imgCopyright"> <span class="i"></span> <span class="info"> Germany’s Dual Vocational Education and Training (VET) System </span> </span> </span> <p class="MsoNoSpacing"></p><p class="MsoNoSpacing"> </p><p class="MsoNoSpacing">There are currently around 325 occupations recognized by the system. The German government, in close cooperation with the German Chambers of Industry and Commerce (IHKs) and the German Confederation of Skilled Crafts (ZDH), ensures that standards are adhered to rigidly, guaranteeing the quality of training provided in Germany.</p><p class="MsoNoSpacing">The higher education system also applies the dual system of vocational training. There are currently more than 120,000 students taking part in a dual study program. These are usually offered by universities of applied sciences. Most of the almost 1,750 dual study programs are in engineering or in business. Today, more than 56,000 companies are participating.</p><h3 class="MsoNoSpacing" id="toc-anchor--6">Motivated and Dependable Employees</h3><p class="MsoNoSpacing">German labor flexibility is reflected in a higher than average employee motivation – exceeding that of most industrialized nations. In fact, according to the IMD World Competitiveness Yearbook, German employee motivation levels are higher than those recorded in the U.S., Canada, Russia, Poland or France. As a direct consequence Germans work more than their international peers and loose less days per annum due to labour disputes than other European nations.</p> <div class="add-to-bookmarks"> <a href="" class="add-to-bookmarks__link" title="">Add to dossier</a> <button class="button" data-tooltip="Log in and add this element to a dossier. Manage your dossiers and export them as PDF in your personal area. Find and add elements to your dossiers anywhere on the website."> <span class="icon-info-circle"></span> </button> </div> </div> </div> </div> </div> </article> </div> <div id="sidebar-right" class="tablet-2col"> <div class="gtai-contactbox"> <strong>Contact Us</strong> <div class="teaserbox teaserbox--contact"> <div class="teaserbox__content"> <div class="contact"> <p class="name" > Jörg Schulze-Goltz </p> <p > <a class="link icon-phone" href="tel:+49 30 200 099 530" title="Call us" > +49 30 200 099 530 </a> </p> <a class="link icon-envelope" href="/en/meta/contact-personal?contactId=81858&documentId=746950" title="Submit your question" > Submit your question </a> </div> </div> </div> </div> <div class="teaserbox "> <div class="img-wrapper" > <picture class="default-picture"> <source srcset="/resource/image/63840/16x9/420/236/d4765b80385bc16daca5971b47d90073/D54F87D7F42EFEA2A66CD707E37045B5/economic-overview-germany.webp 420w, 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business location in compact form.</p> <div > <a href="/en/invest/service/publications/economic-overview-germany-63808" class=" link" role="button" title="Link to page "Economic Overview Germany"">Download the brochure</a> </div> </div> </div> <div class="teaserbox "> <h3 class="teaserbox__title" >Related Links </h3> <div class="teaserbox__content"> <div class="related-links"> <p>You might also be interested in: </p> <a class="link" href="/en/invest/business-location-germany/federal-states/top-investments-of-the-year-2023-in-north-rhine-westphalia-1062534" title="Link to Event" > Top investments of the year 2023 in North Rhine-Westphalia </a><a class="link" href="/en/invest/business-location-germany/business-climate/germany-s-governing-coalition-presents-plan-for-2024-national-budget-1061278" title="Link to Event" > Germany’s Governing Coalition Presents Plan for 2024 National Budget </a><a class="link" href="/en/invest/business-location-germany/strong-economy-781860" title="Link to 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