This invention relates to a multifunctional enzyme having lysyl hydroxylase and glycosyltransferase activity and to the use of the enzyme in glycosylating hydroxylysine residues. In particular this invention relates to a method for producing glycosyltransferase activity, which comprises that a nucleotide sequence encoding lysyl hydroxylase and glycosyltransferase activity is introduced and expressed in a chosen host and the protein product is recovered from the host cell or from the culture medium.