The elasto-plastic stress analysis of orthotropic rotating discs with holes has been carried out by the finite element method (FEM). An isoparametric rectangular element with nine nodes has been chosen and the Lagrange polynomial has been used as interpolation function. Steel-aluminium composite has been manufactured by upsetting under the pressure and the temperature. Mechanical properties and yield strengths of composite material have been obtained experimentally by using a strain gauge in the tensile testing machine. The expansions of plastic regions have been illustrated for various cases. Residual stresses and tangential stresses have been shown on the elasto-plastic boundaries of the disc. The limit of angular velocities of the orthotropic disc have been increased by using tangential residual stresses and tangential stresses in the disc subjected to the centrifugal force.