Latvian engineering company Design Tree specializes in the design and manufacturing of custom-made equipment for businesses with specific production needs. Rather than offering standard catalogue solutions, the company develops tailor-made machinery and technological solutions that help clients automate production processes, develop new products, and increase productivity.
The company is based in Ādaži, where its manufacturing facility and engineering office are located. Within its approximately 200-square-metre premises, Design Tree produces both custom-designed equipment and prototypes for client projects. As the company continues to grow, plans are also being made to expand production capacity further.
Design Tree works with companies across a wide range of industries, from food manufacturing to industrial and heavy engineering sectors, as well as the defence industry, for which the company holds the necessary licence. Its clients include well-known Latvian companies such as Balticovo, Primekss, and Rūdolfs, alongside international businesses.
One of the company’s current projects is the development of a complete production system in cooperation with environmentally friendly household cleaning products manufacturer Purenn Group. The project involves creating an entire production line, covering every stage of the process—from loading empty containers to filling, labelling, and packaging the finished products. This will also become one of the company’s first proprietary products, as Design Tree is investing its own resources into the development with the aim of offering the solution to other manufacturers in the future.
The company has been operating in this highly specialised sector for almost seven years. According to its CEO, Matīss Irbe, each year has been more productive and successful than the last. In recent years, turnover has grown by approximately 30–40% annually, and this year could become the first in which the company reaches one million euros in revenue.
“A significant factor behind our growth is that the projects we undertake are becoming larger and more complex. We currently have a strong order pipeline, a number of projects already in development, and many others in the implementation phase. Therefore, we hope this will be the first year in which we achieve one million euros in turnover,” says Irbe.
The company’s ability to provide a full-cycle solution is one of its key advantages for clients. As Design Tree explains, cooperation typically begins with analysing the client’s needs and ideas, followed by concept development, engineering design, prototyping, testing, manufacturing, and final installation at the client’s production facility.
In some cases, the company supports clients not only in developing equipment but also in creating and scaling their products for mass production.
Although the company’s core operations remain in Latvia, increasing emphasis is being placed on exports. Currently, exports account for approximately 8% of total business activity, but the company is actively working to increase this share.
The main export markets are currently Northern Europe, particularly Sweden, Finland, and Norway. Central Europe—including Germany, Austria, and France—is also viewed as a promising direction for future growth, with several initial cooperation projects already completed there.
The company’s development has also been supported through cooperation with the Investment and Development Agency of Latvia (LIAA), making use of business incubation programmes and export support instruments that have assisted both during the company’s early growth phase and in its efforts to enter foreign markets.
Customer acquisition relies on both reputation and proactive networking. Initially, personal contacts and recommendations played the most significant role. As the company has grown, its website, social media presence, targeted outreach, and participation in international trade fairs have become increasingly important.
“The best marketing is still a job well done and recommendations from satisfied clients. However, while reputation and referrals are highly important in the local market, personal meetings are especially critical when it comes to exports. Most of our international contacts and clients have been acquired through international trade exhibitions,” says Irbe.
The company’s CEO openly acknowledges that results in this industry take time. It is not uncommon for a year or even two to pass between an initial conversation and a signed contract. For this reason, building long-term relationships and maintaining a consistent market presence are essential.
“When it comes to custom machinery development, clients make decisions carefully. They need to assess investments, technical solutions, and expected returns. As a result, a contact we establish today may only become a real project after one or two years. Patience and trust-building are crucial in this industry,” explains Irbe.
Alongside client projects, Design Tree continues to invest in its own development. The company currently employs a team of ten people, all of whom are engineers. At the same time, attracting qualified specialists remains one of the company’s biggest growth challenges, as skilled engineering talent is not easy to find. Nevertheless, the team continues to expand gradually, while parallel investments are being made in the company’s production capabilities.
This article was prepared within the framework of the project “Development of Innovative Entrepreneurship for SMEs”, co-financed by the European Regional Development Fund and the European Union.
