Mitel Relocates IP Phone Manufacturing to Germany

Industry analysts are noting a decisive shift in Mitel’s global operations. The communications technology leader has announced the relocation of its IP phone production to Germany, facilitated by a new manufacturing agreement with Gigaset, a well-established European expert in precision communications technology.

The move marks a strategic decision to strengthen Mitel’s global supply chain resilience while ensuring faster delivery times and superior product quality for European customers.

Approximately one million Mitel devices will be manufactured annually at Gigaset’s advanced facility in Bocholt, North Rhine-Westphalia, leveraging the benefits of German engineering and automated production systems.

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

“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,” he adds.

Designed by Mitel, manufactured by Gigaset

Under the new agreement, Mitel will retain full control of hardware design and software development, while Gigaset delivers high-precision manufacturing.

The partnership model maintains seamless alignment with Mitel’s hybrid communications strategy and supports future innovation, including the integration of AI-driven embedded capabilities.

Gigaset’s Bocholt facility is renowned for its highly automated and environmentally responsible processes, all of which comply with Trade Agreements Act (TAA) standards. The assurances provide confidence for enterprise and public sector customers operating in regulated industries and across diverse geographies.

“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, ’” commented Ralf Lueb, Senior Vice President Global Sales & Marketing at Gigaset.

“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,” he adds.

Building a more resilient telecommunications ecosystem

In a global context where geopolitical uncertainty and logistics disruptions continue to challenge technology supply chains, Mitel’s relocation of production represents a forward-looking commitment to stability. By anchoring manufacturing in Europe, it shortens lead times for regional customers while bolstering operational continuity for its partners and end users across more than 100 countries.

Desk and cordless phones remain a fundamental part of Mitel’s hybrid communications portfolio, especially for frontline and office-based employees who depend on reliable voice technology every day. Ensuring a stable and efficient supply of these devices illustrates Mitel’s ongoing commitment to delivering dependable, high-quality communications infrastructure worldwide.

Phones remain central to business communications

Despite the proliferation of mobile and software-based communication tools, desk and cordless phones remain pivotal in modern enterprise communications.

According to Frost & Sullivan, the global market for such devices is valued at approximately US$2bn, supported by their essential role in emergency response, secure communication and frontline operations.

Chris Pennell, Industry Principal at Frost & Sullivan, noted: “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.”

A commitment to quality and continuity

Mitel’s relocation of IP phone production to Germany marks a clear investment in quality assurance, efficiency and supply chain integrity. Through collaboration with Gigaset, it continues to strengthen its global operations while meeting customer expectations for reliability, sustainability and innovation.