The insulating properties are not the problem. It is that the oxide coating acts as a contaminant and prevents a good bond between the powder and material. Then the paint fails. Same problem with chrome plating on aluminum.
Yup, and it's a better one for some applications.
They picked up that trick from one of our other customers. Small outfit called GE Turbine Systems. We coated ALL of the shaft seals used on the various turbines they made for about 10 years. In that case we used a special powder that provided insulation properties for the shaft.
We also did some parts for Raymond Corp. (fork lift parts) Those were interesting. The powder was a special high temp cured nylon blend. Cure temp was 650 degrees. Those parts had to be preheated, coated then cured. ALL of this had to be done HOT. These were done in a batch oven. You would hang the parts, let them get HOT, then open the oven door, grab a couple parts, close the door, spray them, open the door, then hang them back up. Repeat until you finished the batch. These parts and items like the seals and some medical items we did were done by two people. We also were the ones who taught all the other sprayers the ropes and did all the gun maintainance as well.
AHH the good old days.....