In this paper, we present a two-dimensional irregular bin packing problem (2DIBPP) that takes into account the slit distance and allows the pieces to rotate freely. The target is to arrange a specified collection of pieces with irregular shapes into a minimal number of bins. Firstly, we develop a mathematical model for the 2DIBPP that considers slit distance and free rotation of the pieces, and an equidistant edge expansion approach is then proposed to handle the slit distance. Secondly, a two-stage method is implemented to get a finite collection of promising rotation angles, effectively decreasing the search neighbourhood. Thirdly, we decompose the 2DIBPP into two sub-problems: piece assignment and packing. The Partial Bin Packing (PBP) strategy is employed in the allocation stage, and we adopt an overlap minimization method to pack the pieces into an individual bin. Finally, we use a local search (LS) algorithm to advance the quality of the solutions by adjusting the piece assignment across bins. Experimental evidence exhibits that our approach is competitive in most instances of the literature, with four better results in five benchmark instances.