Given €4.5bn today, few investors would place bets on chemicals and plastics. Yet that is what Solvay, the Belgian chemicals conglomerate, plans to do following the sale of its pharmaceuticals unit to the US’s Abbott Laboratories this week. The decision to reinvest the proceeds, rather than pay a special dividend, suggests that Solvay’s board remains optimistic about the industry’s long-term prospects.

Solvay should think twice. True, the painful de-stocking that added to pressure on sales this year appears to be ending. Orders are ticking back up thanks in part to various governments’ “cash-for-clunkers” schemes, which have spurred demand for cars, a big source of chemicals demand. Margins are rising, too, as factories idled during the downturn lead to tighter markets, and stickier prices.