The effect of differential carbon contents on recrystallisation and texture development has been studied using samples designed to have a known concentration profile. Dissolved carbon can play an active role both at the deformation and annealing stages. Textural changes are associated principally with enhancement of the nucleation rate for recrystallisation with increasing carbon contents. The {111} components become weaker and are replaced by widely scattered orientations. Interstitial carbon present during rolling gives rise to shear banding, causing a further increase in nucleation rate during recrystallisation and an associated development of the Goss texture.