Mitel & Gigaset: Securing the European Telco Supply Chain

Mitel, a global communications technology provider, confirms a strategic relocation of its IP phone production to Germany through a new partnership with Gigaset.

The agreement positions Mitel to reinforce supply chain stability, increase delivery speed and uphold product quality for European customers, all while maintaining tighter control over production within a stable and transparent market.

Securing the supply chain

The decision centres on Mitel’s supply chain strategy to counter global logistics volatility and material shortages.

By producing one million devices each year at Gigaset’s advanced facility in Bocholt, North Rhine-Westphalia, Mitel benefits from highly automated production systems and Germany’s reputation for engineering precision.

Martin Bitzinger, Senior Vice-President of Product Management at Mitel, says: “As global supply chains face increasing volatility, we are taking strategic, proactive steps to ensure quality and reliability for our customers.

“This move leverages renowned German engineering to enhance device quality and reliability. For our customers, it means predictable access to our trusted products and a robust foundation for their communications infrastructure.”

Mitel’s decision integrates manufacturing closer to key European markets, reducing lead times and transportation dependencies.

It also supports compliance with Trade Agreements Act (TAA) standards, vital for regulated sectors such as government, finance and healthcare.

Under the partnership, Mitel retains full ownership of its hardware design and software development processes.

Gigaset provides the high-precision assembly and testing required for enterprise-grade devices, aligning with Mitel’s hybrid communications model.

The arrangement also allows flexibility for future innovation, including AI-powered functionality embedded in devices.

Gigaset’s Bocholt plant

The Bocholt plant, operated by Gigaset, is one of Europe’s most advanced telecommunications manufacturing sites.

The facility uses energy-efficient and environmentally responsible systems designed to ensure scalability and sustainability across production cycles.

Ralf Lueb, Senior Vice President Global Sales & Marketing at Gigaset, explains: “We are delighted to expand our partnership with Mitel further and, through our production in Bocholt, send a strong signal of quality, reliability and ‘Made in Germany.’

“With our highly automated and precision-driven manufacturing, we provide Mitel customers in Europe and worldwide with the assurance of faster delivery times, the highest quality standards and long-term planning security.”

This collaboration allows Mitel to balance production efficiency with environmental responsibility, a key consideration in modern supply chain management.

Manufacturing within the European Union also mitigates exposure to international freight disruptions and supports consistent access to raw materials and components.

Supply continuity and market stability

Industry analysts note that Mitel’s decision reflects a broader shift towards regionalisation within global technology supply chains.

As organisations look to safeguard operations against geopolitical tension and transport delays, onshoring or nearshoring manufacturing becomes an essential component of risk management.

Chris Pennell, Industry Principal at Frost & Sullivan, observes: “Mitel’s decision to move handset production to Germany is a significant strategic move that strengthens supply chain resilience and reinforces its connection to European markets.

This transition allows Mitel to leverage Germany’s rigorous and high-quality standards and demonstrates its commitment to long-term competitiveness and customer trust.”

The market for desk and cordless phones, valued by Frost & Sullivan at approximately US$2bn, remains integral to enterprise communications. Such devices play a vital role in secure and emergency communication channels where reliability is essential.

For Mitel, maintaining a consistent and resilient supply of these devices strengthens customer trust while ensuring business continuity for organisations across more than 100 countries.

By embedding production within Europe, Mitel enhances its operational agility, enabling faster response to shifts in demand while supporting sustainable production practices.

The company’s collaboration with Gigaset illustrates a commitment to integrating advanced engineering with robust logistics to achieve greater supply security.

In a global supply environment marked by uncertainty, Mitel’s relocation of IP phone manufacturing to Germany stands as a clear investment in reliability, efficiency and local expertise.

It ensures the continued availability of essential communications technology while maintaining the company’s focus on quality assurance, sustainable operations and customer confidence.