The effects associated with the change of the deformation path - such as the replacement of homogeneous multi-slip by heterogeneous deformation and a decrease of global strain hardening - have been utilised in the metal forming operation termed KOBO technology. In the case of extrusion it consists in reversible, cyclic twisting of a billet under the extrusion force. The technology enables extrusion of metals with very large deformation in one operation at low temperature. A complex scheme of straining, large cumulated deformation and low temperature of the process results in a fine grained microstructure of the extruded material (product). The new technology requires detailed studies of the mechanism of the plastic deformation with the specific geometry of the zone of metal flow during extrusion. Essential in these studies is the information on the texture and microstructure in the deformation zone. The aim of this work is therefore to disclose the deformation mechanisms on the basis of the observations of microstructure and texture evolution in the zone of plastic flow of the extrudate. Coarse grained polycrystalline billets of magnesium alloys AZ31 were extruded by KOBO at room temperature and also by a conventional method at about 400°C. Methods of texture topography as well as optical observations reveal the specific microstructure and texture in mezzo and micro scale of heavily deformed material after extrusion. It is worth mentioning that the KOBO process leads to compact and rather homogeneous extrudates even in the case of AZ alloys. These hexagonal metals cannot be cold-formed to a high reduction with conventional techniques.