New type of water jet cooled rotating disc atomisation unit was designed and constructed. The raw material was melted in graphite crucible with high frequency induction heating, and atomisation was performed in high purity argon gas atmosphere. Cu-10Sn alloy was atomised to investigate the effect of production parameters, such as disc speed, disc surface condition, liquid metal flowrate, disc fin number and superheat of liquid metal with respect to mean particle size and powder yield rate. The produced powders appeared spherical, rounded, ligamentous, irregular and flaky, depending on particle size. The mean particle size of produced powders was in the range of 100-250 mu m with 65-85% powder yield rate depending of atomisation parameters. The ZrO(2) material coated disc with four fins gave the finer mean particle size and higher powder yield rate in comparison with uncoated disc with two fins.