Adelaide cork maker NuKorc in administration

SYNTHETIC cork maker NuKorc has been placed in administration with debts of about $4 million.

PPB has been appointed as the administrator and will attempt to sell the business, while maintaining a skeleton staff.

The company, which has operations in the US, Spain and locally in Pooraka, employed 58 people in Australia.

PPB's Mark Hall said the company was hit by external factors.

"The wine industry worldwide is probably down around 30 per cent on sales and the Australian dollar is very strong," Mr Hall said.

"Some of the major customers are in Europe and . . . we own two subsidiaries in Europe and US and that has affected those businesses."

NuKorc has until now been a success story, with company founder and current director Brian Dolling an Ernst & Young entrepreneur of the year winner in 2007.

The board includes wine industry heavyweights Wolf Blass, Chris Atkins and Stephen Millar.

Adelaide venture capital firm Paragon Private Equity invested $3.5 million in the firm in 2006, and owns 10 per cent of the ordinary shares. Sydney venture capital firm Nanyang also is a shareholder.

A creditors' meeting will be held March 5.