Transformation of uroporphyrinogen III (Uro'gen III) into precorrin-2, a key precursor in the biogenesis of heme d1, vitamin B12, coenzyme F430, siroheme, and heme. Precorrin-2 is synthesized from uroporphyrinogen III by the action of the enzyme uroporphyrinogen III methyltransferase, which adds two S-adenosylmethionine-derived methyl groups to C-2 and C-7 of the macrocycle.