This paper describes a heuristic algorithm for the two-dimensional free-form bin packing (2D-FBP) problem, which is also called the irregular cutting and packing, or nesting problem. Given a set of 2D free-form bins, which in practice may be plate materials, and a set of 2D free-form items, which in practice may be plate parts to be cut out of the materials, the 2D-FBP problem is to lay out items inside one or more bins in such a way that the number of bins used is minimized, and for each bin, the yield is maximized. The proposed algorithm handles the problem as a variant of the one-dimensional bin-packing problem; i.e., items and bins are approximated as sets of scanlines, and scanlines are packed. The details of the algorithm are given, and its application to a nesting problem in a shipbuilding company is reported. The proposed algorithm consists of the basic and the group placement algorithms. The basic placement algorithm is a variant of the first-fit decreasing algorithm which is simply extended from the one-dimensional case to the two-dimensional case by a novel scanline approximation. The group placement algorithm is an extension of the basic placement algorithm with recombination of input items. A numerical study with real instances shows that the basic placement algorithm has sufficient performance for most of the instances, however the group placement algorithm is required when items must be aligned in columns. The qualities of the resulting layouts are good enough for practical use, and the processing times required for both algorithms are much faster than those by manual nesting.