Major steel funds not yet approved - Thyssenkrupp labour leader

DUISBURG, Germany (Reuters) - Much-needed funds for Thyssenkrupp's <TKAG.DE> steel division, which could be turned into the conglomerate's profit engine, have not yet been approved by management, a leading labour representative said.

"The management of Thyssenkrupp needs to earn that money first," Tekin Nasikkol, who heads the works council of Thyssenkrupp Steel Europe, said on Thursday, adding some members of the board were saying the unit needs too much money.

Under plans revealed a day earlier, Thyssenkrupp's steel unit could become the company's new core profit driver following an expected sale of its elevator division.

It currently receives about 570 million euros (£489.68 million) in investments per year, but more is needed if it the overhaul is to be realised.

Nasikkol said it might take until March until there is clarity on how much in additional annual investments will be made at Steel Europe, whose adjusted operating profit fell 95% in the 2018/19 fiscal year.

"Only then will we know how the elevator deal will work. And then the decision will be made on how much money will flow back into the steel area," Nasikkol said. "Steel is in need of massive investments."

Thyssenkrupp Elevator Technology could fetch 15-17 billion euros. The conglomerate's Chief Executive Martina Merz wants to decide by the end of March at the latest whether the unit will be sold or listed on the stock exchange.

Klaus Keysberg, Thyssenkrupp's board member in charge of steel on Wednesday said that the scope for additional resources was "very limited".

(Reporting by Tom Kaeckenhoff; writing by Christoph Steitz; editing by Thomas Seythal and Emelia Sithole)