The microstructure, texture and mechanical properties have been studied in PM2000 compressed via dynamic plastic deformation to a strain of 2.1. It is found that dynamic plastic deformation results in a duplex aOE (c) 111 > + aOE (c) 100 > fibre texture and refines the initial microstructure by nanoscale lamellae, which substantially increases the strength of the material, but decreases its thermal stability. In the as-deformed microstructure, the stored energy density is found to be higher in aOE (c) 111 >-oriented regions than in aOE (c) 100 >-oriented regions. Recovery during annealing at 715 A degrees C reduces the energy stored in the deformed microstructure. This reduction is more pronounced in the aOE (c) 111 >-oriented regions. Orientation-dependent recrystallisation takes place in the recovered microstructure, leading to strengthening of the aOE (c) 111 > fibre texture component at the expense of the aOE (c) 100 > fibre texture component.