The NHS is to open a new blood centre in Barnsley to support hospitals across the region.
It will replace two aging centres in Sheffield and Leeds, which are due to close by 2020.
NHS Blood and Transplant said the new centre will become a regional hub and stressed it will not affect blood supplies to local hospitals or how much blood is collect from donors.
Bosses hope the move to Barnsley will save £1 million a year in running costs, with the Sheffield and Leeds sites needing £16 million spent on them over the next 10 years.
Rob Bradburn, Director of Finance, said: “Building a new purpose built centre represents a compelling investment in our estate without affecting the supply of our products and services to hospitals.
“By consolidating into a larger centre, we make the best use of the blood we collect from our generous donors and save money for the benefit of the wider NHS.
“The security, safety and continuity of our services remains our top priority when making any changes. We have involved our hospital customers throughout the development of this proposal and will continue to work closely with them to ensure a smooth implementation.”
Staff affected by the move will be helped with finding new roles.
An NHS spokesman said: "Our aim is to invest for the long-term, so that we can respond to the reduced demand for blood, make the best use of every donation, and ensure flexibility to respond quickly to changes in volume and component specification."