Impact Coatings linked the increased activity to China’s approval of five regional hydrogen clusters under a four-year national hydrogen application pilot program. The clusters cover several of the country’s principal industrial regions and are eligible for combined central-government support of up to RMB 8 billion, approximately $1.1 billion, over four years.

The government funding does not flow directly to Impact Coatings. The company said implementation of the program is prompting fuel-cell customers to increase production, which is translating into higher coating orders and forecasts.

Impact Coatings had previously said anticipated Chinese fuel-cell demand was taking longer to develop following the pilot program’s March announcement. The company now characterizes that delay as a timing issue rather than a change in the underlying market.

The Shanghai center provides physical vapor deposition coating services for bipolar plates and other hydrogen components. The operation includes automated cleaning, material handling and post-coating inspection within a controlled production environment.

Impact Coatings develops PVD equipment, coating materials and contract-coating services for hydrogen, fuel-cell, automotive and other industrial applications. PVD processes deposit thin functional layers intended to modify surface properties, improve durability and support component performance.

The production increase is relevant to PCI readers following special-purpose coatings and high-volume surface-engineering processes for hydrogen and fuel-cell components.