Italian pasta maker Barilla has said it will close one of its plants and sell off a mill as it tries to increase efficiency amid weak demand for pasta products.

Barilla said it plans to invest €162m (US$206.5m) over the next three years to cut costs, in a move that includes the early retirement or re-assignment of 229 employees, reported Reuters. The company also plans to increase production at two existing plants and build a new mill as part of its efficiency drive.

Company executive Nicola Ghelfi said Barilla "is going fine for now but we're worried about the years to come".