Demtec Inc has struck an agreement in principle with Wahid Construction to build a C$5m factory in Kabul.
The Québec-based company has submitted a funding request to the Afghanistan Reconstruction Trust Fund in order to undertake a feasibility study.
Demtec believes its modular units have great potential in a country in desperate need of housing, health clinics and schools.
It says wooden homes are ideal for use in Afghanistan because of their resistance to earthquakes, strong winds and extreme temperatures.
